For me rebuilding is a last resort - you lose every bit of software and every device driver you have ever installed after day 1. Rebuild can be quicker than trying to find the problem though

. It is also more certain of a result.
Instead of a rebuild you might try, in order of ease
* running a full virus boot scan
* leaving laptop running for a while to see if the problem reduces - it may be index scans
* If XP press start button, type "cmd" in the search box, in the black window that opens type "tasklist /SVC" this will show you all the processes running under svchost. Look for any odd ones.
* If Vista or Win 7 its much easier - start the task manager, on the processes tab, click "show processes from all users", sort by CPU (click the CPU header), find the process using all the CPU, right mouse click it and click "Go to services". This will show you all the processes using the rogue svchost. Pick any service there you don't like the look of, right mouse click it and click "stop service". See if you system speeds up or stops. Repeat until the former. Once you know the problem service you can permanently disable it, assuming it is not essential.