Generic Host Process For Win32 Services- Error Comes and If press 'DONT SEND' Closes the Internet on All PC's

Hello All,
The Configuration is like -
3 PC's Windows XP Service Pack 2 Installed
1st PC has 2 network cards, one for the broadband connected to modem and 2nd going into the hub so that other 2 pcs can also use the network as well as the Internet from the 1st.
Working Fine.
But of late some error is coming on the 1st pc all of a sudden as (JPG File is Attached)

"Generic Host Process for Win32 Services"
Generic Host Process for Win32 Services has encountered a problem and needs to be close.....................................................

DEBUG                                           SEND ERROR REPORT                                   DONT SEND
and If I click what data this error report contains, it shows another screen showing-

EventTYPE : BEX,  P1: svchost.exe p2...... p3......... p4netapi32.dll........

And again after sometime one another error comes with just SVCHOST.EXE Application error(except on software exception), you can press OK only.
A screen is attached showing all.

NOW If I press OK or Dont Send at any of these error messages, the internet closes  at the 2 other pcs, though I checked the Network is ON and they can share drives/files. Only Internet is effected. I also feel that there is some problem with the SVCHOST.exe as it is shown in 1st and the 2nd error.

I have to restart the 1st pc and then only it becomes fine but the error can come again at ay time.

Please advise as what can be the exact problem and its resolution.

Regards,
error-windowsxp.jpg