svchost.exe app. error - nqueue.ini

This thread is moved from Malware Forum.
Quick background:
I'm not sure what I clicked (on a normally safe and reliable architecture/design website that I visit all the time) but since then, one particular svchost.exe process uses up most of the CPU RAM causing various application errors. I eventually have to shut down. This only happens when connected to the our office (3 computers) network and the internet. When disconnected the machine works fine. The particular svchost process is the one with the all the (system?) files. When the computer is plugged into the network the memory usage increases quite steadily from 25Mb to over 700Mb and CPU Usage from 6% to between 70-100%. Windows XP Pro, Service Pack 3, IE browser.

I followed the cleaning procedure, but no malware was found. Went through another round of ComboFix & MGTools, and still no malware found. I attached the most recent ComboFix and MGTools logs.

TimW's (MajorGeeks Administrator) response:

I am not finding any malware in your logs. However, I am curious as to what this is:
C:\WINDOWS\nqueue.ini

You may need to search for PID 1152. That seems to be the process that is taking so much memory. It would be best if you post in the software forum for further assistance.


I don't know how to search for PID 1152, but in Task Manager today the svchost.exe process at issue is PID 1088.

Any help is much appreciated.

 

Quick update:
nqueue.ini is part of ReproDesk 1.6