Again: It's probably not SVCHOST that's corrupted. It's more likely to be one of the service DLLs that it loads.
I'm not saying it's corrupted. I'm thinking that the version Matt restored wasn't the same version the system had, thus DLLs on the system expecting a certain version of SVCHOST are having problems.
It's possible, and yet again I curse the f***ing PC manufacturers for saving their pennies and not shipping restore discs with their computers. I'm sure they'd say "oh, but we give the user the option to make their own." Yeah, like the average user is going to do that!
So yeah, I don't really know if the disc she had was for that computer. There were three computers in their office.
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