How to Fix the Svchost.exe Application Error in Windows XP

Verify and Configure your Windows Update Service Settings
1. Click on the Start button at the bottom left-hand corner of your desktop. Once the Start menu opens, click Run and then type 'services.msc' in the text field. Click OK when you are done.
2. Navigate to the Automatic Updates service in the right-hand pane and then double-click on it. Select the Log On tab. Make sure that Local System Account is selected as the default logon account.
3. Uncheck the option 'Allow service to interact with desktop.' Now go to the Hardware Profile section, also found under the Log On tab. Enable this service.
4. Click on the General tab. Verify that the start-up type is set to Automatic. If not, use the drop-down menu to select this option.
5. Go to the Service Status section. Click on the Start button to enable this service. Do the same thing for the Background Intelligent Transfer Service (or BITS).
Reconfigure Your Windows Update DLLs
6. Click the Start button and then click Run. Type 'cmd' into the text field. Click OK.
7. In the Command Prompt, type in REGSVR32 WUAPI.DLL and hit Enter.
8. Wait until you receive a message reading 'DllRegisterServer in WUAPI.DLL succeeded.'
9. Repeat this process for each of the following commands; type in each command and hit Enter after each line:REGSVR32 WUAUENG.DLLREGSVR32 WUAUENG1.DLLREGSVR32 ATL.DLLREGSVR32 WUCLTUI.DLLREGSVR32 WUPS.DLLREGSVR32 WUPS2.DLLREGSVR32 WUWEB.DLL
Delete the Corrupted Windows Update Files
10. Type the following command into the command prompt and press Enter: net stop WuAuServ. Type in: cd %windir% and hit Enter.
11. Now type in: ren SoftwareDistribution SD_OLD. This will rename the SoftwareDistribution folder.
12. Restart the Windows Update service by inputting the following command: net start WuAuServ.
13. Type in: Exit and then hit Enter to close the Windows Command Prompt.
14. Reboot your PC. When you restart Windows, you shouldn't receive this error message anymore. If you do, download the two Windows Updates listed below.