What is the svchost.exe? This process is not a virus, it is the process which is the part of the Microsoft Windows and responsible for network tasks.
If it's running out of the Windows\system32 directory it's a valid program, If it running from any other directory, other than system32, consider it a possible Trojan and investigate.
Some spyeare creates the virus svchost.exe process, for example CoolWebSearch masks as very similar name svcpack.exe. Also this viruses are trying to be an svchost.exe: W32.Assarm, W32/Jeefo W32.Welchia.Worm.
Once was discovered that one of his computers got some strange messages on startup: svchost.exe error illegal operation. This computer was runnig Win98. Then looked into the windows-folder to look for suspicious files. And there were a lot of them! Then was all of files and restarted his computer. But when entered the folder, I found the same files again. Seaeching on the web to find an anti-virus. I found to Symantec's homepage and found some documentation about a virus called "Backdoor.Zinx".
And he found some of the files on their list. svchostc.exe and svchosts.exe. He deleted these files many times, but every time it recreated itself. Then he discovered a file called "svchost.exe" in the windows-folder. He pressed the delete-button but got an error message. It was in use! By Windows itself!
So if this file appear on Win98 is definitely a virus.
MSBlast.D, LoveSan.D or Nachia are using this program name too. Here is the instruction how to remove it. Disconnect your computer from the local area network or Internet, at the command prompt, type NET STOP "Network Connections Sharing" and NET STOP "WINS Client". Clean out the registry: run regedit, find key HKEY_LOCAL_MACHINESYSTEM/CurrentControlSetServices and remove RpcPatch and RpcTftpd keys. Delete c:\windows\system32\wins\svchost32.exe and dllhost32.exe Thats all.