MS has finally fixed ALL the bugs relating to SVCHOST. The patch can be found at:

http://support.microsoft.com/default...;EN-US;Q927891

It's an update to the same patch released a month before, which actually didn't work for me. After installing this new patch it's fixed this problem which I've been having for a year now and has prevented me from using Microsoft Update and would randomly lockup up the PC about 3 times a day!