We are still having this problem at our workcenter. The
networking folks have noticed that when msblast.exe
attempts to hit our network, that's when our users go down.

You're fine so far as I can tell, as it's exactly what
we've been doing (except for the SP4 bit, that's not
approved for installation on our corporation systems.)
The problem still remains as an external source trying to
hit your machine, and it's causing svchost.exe to fall
flat on it's face.

If you're not on a corporate network, you can firewall
port 135 and block it from hitting, and that should work
fine. Our problem is that being in a corporate network,
port 135 is REQUIRED (reading this, Microsoft folks?) for
WINS resolution, DHCP services and Terminal Service... all
of which are in use here. We've got port 135 blocked for
all traffic outside of our network... it's just inside the
firewalls that the problem exist.

Until we get the problem solved (that is, all systems
patched and cleaned) we're going to continue having
svchost.exe errors. We've already had one hit this
morning, and I think we've had another this afternoon...
and each time it happens when msblast or it's variants try
to slam the machines here.

At least our facility is 100% patched and cleaned...

-Raymond Lang
The Boeing Company
Ft. Walton Beach, FL.