Redneck, Talon's right. Your friend picked up the Navidad virus. If he has a clue where it may have come from he should notify that person, as it's likely he/she doesn't even know they sent it. Check out the Symantec page Talon linked to.
FYI winsvrc.exe does not exit, and that's the problem. A registry edit from the virus points every executable on your system to this non-existant file, and viola you have a non-functioning system.