That does seem a bit slow. On a 1.1Ghz P3 laptop here, with file logging enabled and using the GUI app, a Process Files step (w/ a single Log Message child to log the filenames) for *.exe in C:\Program Files (1270 files) takes about 5 minutes to iterate over all files after the Process Files step has loaded the filenames; the Console app runs the same steps in about 3 minutes. Can you describe the hw/sw configuration of the box in a little more detail?
One alternative method would be to use a single Run Program step with a command of:
%DOSCMD% FOR /R "drive:\path" %%i IN (*.sql) DO osql "%%i" <add'l osql switches>
(see
http://www.kinook.com/Forum/showthread.php?threadid=362 for caveats on the exitcode returned when using FOR).