Fix that works permanently
On every machine where I've encountered svchost.exe errors I have been able to permanently fix the problem by simply disabling hyperthreading and/or smp. No registering dll's or deleting directories. Biggest problem is machines where smp can't be disabled in bios, though removing the second processor will work.
This does impact performance obviously, but updates proceed normally and the error does not occur again. I have fixed 5 machines to date, and have never had to revisit them, going back about 6 months.
I understand that MS has released a fix for this, but in order for it to be installed via the normal update procedure you may find that this fix still helps, as you only need to visit bios before the update, and then after, assuming the fix works, re-enable hyperthreading/smp. Otherwise you'd need to install the patch manually.
I haven't had an opportunity to test the patch yet, but will install it later today, then wait for normal updates and see what happens!