services.exe
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Description: Application that is used only in Windows NT 4, 2000, and XP for starting, stopping, and interacting with system services.
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It on my machine currently is using about 1.6MB RAM and has 7.8MB RAM allocated to it but not in use, 0% CPU. It shouldn't really be having that effect.
I'd say to run the usual spyware/virus check, make sure your system is clean.