svchost maybe is not the cause of what you guys have, have you installed the patch for the welcha worm, if yes then your svchost should have been fine, if you have multible svchost running in your task manager then you might have the welcha worm(blaster).
SUMMARY
This article describes Svchost.exe and its functions. Svchost.exe is a generic host process name for services that run from dynamic-link libraries (DLLs).
MORE INFORMATION
The Svchost.exe file is located in the %SystemRoot%\System32 folder. At startup, Svchost.exe checks the services portion of the registry to construct a list of services that it needs to load. Multiple instances of Svchost.exe can run at the same time. Each Svchost.exe session can contain a grouping of services, so that separate services can run, depending on how and where Svchost.exe is started. This allows for better control and easier debugging.
Svchost.exe groups are identified in the following registry key:
HKEY_LOCAL_MACHINE\Software\Microsoft\WindowsNT\CurrentVersion\Svchost
Each value under this key represents a separate Svchost group and is displayed as a separate instance when you are viewing active processes. Each value is a REG_MULTI_SZ value and contains the services that run under that Svchost group. Each Svchost group can contain one or more service names that are extracted from the following registry key, whose Parameters key contains a ServiceDLL value:
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\Service
To view the list of services that are running in Svchost:
Click Start on the Windows taskbar, and then click Run.
In the Open box, type CMD, and then press ENTER.
Type Tasklist /SVC, and then press ENTER.
Tasklist displays a list of active processes. The /SVC switch shows the list of active services in each process. For further information about a process, type the following command, and then press ENTER:
Tasklist /FI "PID eq processID" (with the quotation marks)
The following example of Tasklist output shows two instances of Svchost.exe that are running. Image Name PID Services
========================================================================
System Process 0 N/A
System 8 N/A
Smss.exe 132 N/A
Csrss.exe 160 N/A
Winlogon.exe 180 N/A
Services.exe 208 AppMgmt,Browser,Dhcp,Dmserver,Dnscache,
Eventlog,LanmanServer,LanmanWorkstation,
LmHosts,Messenger,PlugPlay,ProtectedStorage,
Seclogon,TrkWks,W32Time,Wmi
Lsass.exe 220 Netlogon,PolicyAgent,SamSs
Svchost.exe 404 RpcSs
Spoolsv.exe 452 Spooler
Cisvc.exe 544 Cisvc
Svchost.exe 556 EventSystem,Netman,NtmsSvc,RasMan,
SENS,TapiSrv
Regsvc.exe 580 RemoteRegistry
Mstask.exe 596 Schedule
Snmp.exe 660 SNMP
Winmgmt.exe 728 WinMgmt
Explorer.exe 812 N/A
Cmd.exe 1300 N/A
Tasklist.exe 1144 N/A
The registry setting for the two groupings for this example are as follows:
HKEY_LOCAL_MACHINE\Software\Microsoft\Windows NT\CurrentVersion\Svchost:
Netsvcs: Reg_Multi_SZ: EventSystem Ias Iprip Irmon Netman Nwsapagent Rasauto Rasman Remoteaccess SENS Sharedaccess Tapisrv Ntmssvc
RApcss :Reg_Multi_SZ: RpcSs
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How Does the Welchia Worm Infect My Computer?
Copies itself to the Wins directory in the System or System32 folder in Windows usually
C:\Windows\System32\Wins\Dllhost.exe for Windows XP or
C:\WinNT\System32\Wins\Dllhost.exe for Windows NT/2000
There is a legitimate file called Dllhost.exe (about 5-6K) in the System32 directory.
Makes a copy of the TFTP server (TFTPD.exe) from the Dllcache directory to the following directories.
C:\Windows\System32\Wins\svchost.exe for Windows XP or
C:\WinNT\System32\Wins\svchost.exe for Windows NT/2000
NOTE: Svchost.exe is a legitimate program, which is not malicious, found in the System32 directory
Creates the following services:
Service Name: RpcTftpd
Display Name: Network Connections Sharing
File: %System%\wins\svchost.exe
This service will be set to start manually.
Service Name: RpcPatch
Display Name: WINS Client
File: %System%\wins\dllhost.exe
This service will be set to start automatically.
Ends the process, MSBLAST, and delete the file %System%\msblast.exe which is dropped by the worm, MSBlast.A. First, it checks the operating system version, then it downloads the appropriate patch from the designated Microsoft Web site. After executing the patch, it reboots the system.
Some of the patches it downloads into the system are as follows:
http://download.microsoft.com/download/6/9/5/6957d785-fb7a-4ac9-b1e6-cb99b62f9f2a/Windows2000-KB823980-x86-KOR.exe
http://download.microsoft.com/download/5/8/f/58fa7161-8db3-4af4-b576-0a56b0a9d8e6/Windows2000-KB823980-x86-CHT.exe
http://download.microsoft.com/download/2/8/1/281c0df6-772b-42b0-9125-6858b759e977/Windows2000-KB823980-x86-CHS.exe
http://download.microsoft.com/download/0/1/f/01fdd40f-efc5-433d-8ad2-b4b9d42049d5/Windows2000-KB823980-x86-ENU.exe
http://download.microsoft.com/download/e/3/1/e31b9d29-f650-4078-8a76-3e81eb4554f6/WindowsXP-KB823980-x86-KOR.exe
http://download.microsoft.com/download/2/3/6/236eaaa3-380b-4507-9ac2-6cec324b3ce8/WindowsXP-KB823980-x86-CHT.exe
http://download.microsoft.com/download/a/a/5/aa56d061-3a38-44af-8d48-85e42de9d2c0/WindowsXP-KB823980-x86-CHS.exe
http://download.microsoft.com/download/9/8/b/98bcfad8-afbc-458f-aaee-b7a52a983f01/WindowsXP-KB823980-x86-ENU.exe
The downloaded patch has the file name, RpcServicePack.exe. This worm deletes this file after it is run.
Before downloading or installing the patch on the system, this worm first checks if the system has been previously patched by checking for specific registry keys to make sure the patch hasnt been installed.
The worm travels through a computer network or local area network looking for unpatched and vulnerable machines. The worm will use a ping to determine if the active machine is on a network.Once the worm identifies a machine as being active on the network, it will either send data to TCP port 135, which exploits the DCOM RPC vulnerability, or it will send data to TCP port 80 to exploit the WebDav vulnerability.
Creates a remote shell on the vulnerable host that will connect back to the attacking computer on a random TCP port between 666 and 765 to receive instructions.
Launches the TFTP server on the attacking machine, instructs the victim machine to connect and download Dllhost.exe and Svchost.exe from the attacking machine. If the file, %System%\dllcache\tftpd.exe exists, the worm may not download svchost.exe.