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GorapsFlag for Canada

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SVCHOST.EXE 100% disk activity

I have a computer loaded with WIndows 7 64bit. Today they complaining about programs not responding.   I noticed that the Disk activity was steady at 100% being caused by svchost.exe (locasystemnetworkrestricted).  I've ended the process tree but when certain programs are loaded example: Office.  that process restarts and the disk activity goes back to 100% and makes the computer unusable.

I ran a diag on HD and it passed.

I uninstalled AV (Symantec) and problem still exists.

any ideas?
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Adam Leinss
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Shows alot of svchost.exe  but nothing you can drill down into.
Goraps, hopefully you were able to review the steps before the moderator removed them.  If not, please respond.
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Since it appears to Office on local system network restricted
Service Host: Local Service (Network Restricted) contains a lot of  sub-services, and one of these sub-services is causing Service Host: Local Service (Network Restricted) to use CPU to its maximum.

This service is called Superfetch and it’s used to pre-load data from hard disk into RAM memory.
To  improve your performance, and get rid of the high CPU usage, you have to disable Superfetch service,
Run services.msc to open the Services Manager.
Scroll down to Superfetch service,
Double-click on it to open it Properties box. Click on Stop to stop the process.
There's an article here with pictures
Disable Superfetch & Prefetch for SSD in Windows 8 / 7
http://www.thewindowsclub.com/disable-superfetch-prefetch-ssd
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@Merete  Your suggestion didn't help issue with 100% Active time constant on system.
agree with rbudj suggestion turn off windows updates.,
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Windows updates are turned off via a GPO because we use a patch management system (Shavlik)
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Without the author's assistance these experts answers are the best and highly likely would have resolved it based on experience.