Question : Problem: Error message: when starting computer.

I am running a PC with Windows XP Home Edition. Most mornings upon starting up my machine I am getting this error message.
Generic Host Process for Win 32 Service has encountered a problem and needs to close.
I see a button that says press debug and when pressed nothing happens.
The error signature reads as follows:
szAppName: svchost.exe
szAppVersion: 5.1.2600.2180
szModName: msi.dll
szModVer: 3.1.4000.4039
offset: 00027fb5
The technical report reads: The following files will be included in this report.
C:\Docume~1\Floyd\LOCALS~1\Temp\WERef96.dir00\svchost.exe.mdmp
C:\Docume~1\Floyd\LOCALS~1\Temp\WERef96.dir00\appcompat.txt
When this happens sometimes I can shutdown the computer from Windows and sometimes I need to manually shutdown with the power button.
What does this error indicate is happening and what can I do to fix it?

Answer : Problem: Error message: when starting computer.

If you decide to go for a format & clean install. probably the most popular article is this one>

"Clean Install Windows XP":
http://www.michaelstevenstech.com/cleanxpinstall.html