Hi squall280,
We can certainly assist you in fixing the svchost.exe problem. But first, the logs from the following programs are needed, so a malware expert can assist you in cleansing your system.
Logs requested: Malwarebytes (MBAM), OTL, aswMBR. These programs are safe to run and will produce the logs needed for a custom fix to be crafted for you.
Here:
http://forum.avast.com/index.php?topic=53253.0Click
"Attachments and other options" to attach the logs in your next reply.
Sounds like a severe infection, so would not use your system for anything except getting the cleansing process underway and done.
Whatever you do, do not quarantine or delete the svchost.exe file, as this is likely a needed system file, even if it is infected. System may not boot without this file, so... a malware expert will guide you through this process without damaging your system.