I seem to be having that same Generic Host Process for Win32 Services error that SO many people are having. I've read all I could find about it, but it looks like nobody's got a definite answer on what to do. In my case, the error pops up at seemingly random intervals and tells me that there was a Generic Host Process for Win32 Services Error and it will have to be shut down, or something like that. It then asks me if I want to send a report, and if I don't click 'Send report' or 'Don't send report', and just leave it there, nothing happens for another 10 - 15 minutes or so. But after that, the internet suddenly stops working, nothing connects anymore, and if I try to see the 'status' of the connection, the window just blinks and disappears again. Also, I get this weird thing for a moment, as if my Windows XP windows went back to their Windows 98 style, all square and grey.
After the internet stops working, and won't let me disconnect and reconnect, the only way I've found to make it work properly again was to reboot the PC.
I've seen weather I have that Windows Update 918899, and I don't think I do. I've tried using system restore, even though I didn't think it was gonna work (it didn't), since I didn't have anything installed/uninstalled lately, and I am currently considering defragmenting my disk. Does anyone have any idea at all why this is happenning? Has anyone succeeded in fixing this?