svchost.exe and Generic Host Process error on startup

Hey guys,

Just recently had this issue...on startup I get this Application Error from svchost.exe, referenced memory at "0x000000010" or something cant be read (ok or cancel)...and behind that a "Generic Host Process for Win32 Services has encountered an error" message (Debug Send Error report or Don't Send).

This occurs everytime on startup (two error windows, svchost usually comes up first) and if I click on don't send, nothing happens, but if I click on OK from the svchost error window, my taskbar freezes and my computer slows to a crawl (I've waited for about 20minutes, stil like this).

I've looked everywhere and tried everything, including the windows services fix, port fixes, firewall, update...everything I can get my claws on, but all have failed!

My personal opinion...this all happened when my windows automatically updated and wants me to "Turn Off and install updates ", instead I restarted. Just a hunch but I think this all has to do with a corrupted update process. I have no earlier system restore points and I'm out of options. The only way I'm able to make this post is because if I totally ignore the svchost.exe error box, my computer actually starts up fine in the back and I can use it. If I even touch the OK or Cancel (or the little "x" to close the box) button then my computer goes into semi-limbo.

Please help guys, any tip would be greatly appreciated!
Derg

EDIT: oh sorry about that, I have a IBM Thinkpad Z60m with 1Gb RAM Intel Centrino 2.0GHz, WindowsXP Professional with services pack 3. Funny how this error occurs in sp3, everywhere I look people complain about it happening to sp2...

and, these two error messages does not occur in safemode