Tariq,

SVCHOST attempting to load something from a TEMP directory certainly looks like a virus infection.

google "svchost.exe.mdmp" and check some of the articles

>Error Report Contents
>
>C:\DOCUME~1\CITYCO~1\LOCALS~1\Temp\WER3b7e.dir00\svchost.exe.mdmp
>C:\DOCUME~1\CITYCO~1\LOCALS~1\Temp\WER3b7e.dir00\appcompat.txt