Svchost.exe is the core process of a system, and it usually only locates in the directory C:/Windows/System32. It is very easily infected by viruses. To determine whether your Svchost.exe is infected or not, and learn how to fix it, please read this good article here:
http://www.articlesbase.com/security-articles/free-svchost-exe-fix-how-to-fix-svchost-exe-error-1583656.html
It will help you!
Mark Ar.
December 2009