That thing is fine. Not quite sure what exactly it does, but it's a normal windows process. There should actually be around 4 or 5 of them runnin at all times
scvhost.exe is a process which is registered as W32/Agobot-S virus. This Trojan allows attackers to access your computer from remote locations, stealing passwords, Internet banking and personal data. This process is a security risk and should be removed from your system.
Looks as if you've got rid of the actual file but the registry entry remains. So, when your PC boots, it goes looking for the file but fails. Either go into the registry yourself or use a registry cleaner.
Have you disabled thet system restore feature, some viruses use that as a way of reinfecting. Disable it then run your virus removal software from safe mode and edit registry at this point too. After you are happy re enable system restore.