cpu instability

I'm perplexed. When my XP home edition is running slow (salmost always lately) I open the task manager to veiw the performance meter. The CPU usage bounces all over the place even when the system is idle. When the
meter gets up to 100% the system basically freezes. I've removed most of the items in the start menu, the system tray, done spyware cleans used Crap Cleaner (great program). I'm getting ready to re-install the operating system but wanted to reach out for help.
I have 350K memory, It would help to go to 512K but that's not the problem.
The busiest process seems to be SVCHOST or something like that.
Could this be hardware? Overheating? Bad Power supply? (I don't think so)
Any ideas would be greatly appreciated.
Thanks

 

INTRODUCTION
This article describes Svchost.exe and its functions. Svchost.exe is a generic host process name for services that run from dynamic-link libraries (DLLs).
MORE INFORMATION
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.

Svchost.exe groups are identified in the following registry key:

Link with more info on svchost http://support.microsoft.com/kb/314056

I would also check your "Event Viewer" to see if any flags have been set, then post back. Hope that helps a little

 

This is what I get from the event viewer:
AMLI: ACPI BIOS is attempting to read from an illegal IO port address(oxcfc) which lies in the oxcf8 - oxcff protected address range. This could lead to system instability. Please contact your system vendor for tech assistance
BIOS is Award Medallion BIOS v6 oopg Phoenix technologies

 

Just something to try:

Click START, then RUN, then type in msconfig (press enter).
Click the radial button "Selective Startup"
Then uncheck "Load startup items".

Press ok, then OK to reboot.

Are your issues still present?

 

To Theefool,
That didn't work, but opened up a tool in XP I never knew of.
Thanks