Firstly, thanks for your assistance.
I have been getting the dreaded "Generic Host Process for Win32 Services has encountered a problem and needs to close" for the past few days. THe machine will boot up and connect to the Internet, but some time after opening a browser window I'll get the error message. This will be followed by my taskbar changing from XP to classic, and at that point the system eventually freezes. When that happens I cannot shut down gracefully and need to remove the battery from the laptop.
I have tried to eliminate using Norton AV (also have the firewall), Spybot and Malwarebytes. I've also tried following all of the suggestions at support.microsoft.com/kb/821690. Virus scan and and Spybot found nothing. Malawarebytes found a few things that I thought might solve the problem after they were cleaned up, but the problem appeared again shortly after. I fear I may have a nasty rootkit, but I was hoping to verify before reformatting and reinstalling the OS.
From some of the other posts, I've noticed that the usual first step for this type of issue is an OTL scan. Results are below.
Edited by kenkocuse, 09 November 2010 - 10:10 PM.