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Hmmm. I would expect the hosts file to make a system faster - some DNS queries would be resolved locally rather than having to query the DNS server If it happens again, the following DOS command will shed light on what the svchost is up to. tlist /svc
But wouldn't it attempt to load the hosts file into memory at system start-up ?
Just for completeness, if you're wondering whether the svchost.exe you see listed in Task Manager is legit or not, you should download the excellent Process Explorer utility from Sysinternals. This gives a whole load more useful info than the Windows bog-standard Task Manager, including which services each instance of svchost.exe is managing. It's a really useful tool to have and it's free
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If it happens again, the following DOS command will shed light on what the svchost is up to. tlist /svc
