Clylbw
Reminds me of the tech support question " where's the enter key? I don't have a key marked enter."....
You won't find %windir%...... that's just an expression that means the windows system directory, wherever it may be, and whatever it may be called. In win XP it SHOULD be C:\WINNT\SYSTEM32
On my system, it's size is 13Kb and dated 18/08/2001 12:00
I 'm not convinced you can just delete it.... I only have one occurrence of this file on my PC.
Can I suggest you just search for 'svchost' ..... see what turns up.
If you have only one occurance, then if you delete it, you'll have problems. What you will need to do is replace it with an uninfected version. I've attached a zipped up version for you.