The Svchost.exe file is located in the %SystemRoot%\System32 folder. At startup, Svchost.exe checks the services part of the registry to construct a list of services that it must load. Multiple instances of Svchost.exe can run at the same time. Each Svchost.exe session can contain a grouping of services. Therefore, separate services can run, depending on how and where Svchost.exe is started. This grouping of services permits better control and easier debugging.

via the always interesting raymond chen.

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