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generic host process for win 32 services has encountered a problem and needs to close. Then a message says you have been diconnecte would you like to reconnect? i click yes and a message says your modem is busy or having a problem. i have to reboot to reconnect.
 

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This might cover your problem:

http://support.microsoft.com/default.aspx?scid=kb;en-us;821690

I've also been able to get online even with that service blocked by me using Sygate Firewall, so if you have a 'proper' firewall (not the inadequate Windows one), try permanently blocking it. If you don't allow Windows to use it it shouldn't cause the error, and, like I say, I can get online with it blocked.
 
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