I don't know how to help you with the computer problems. The next time you
get the "svchost..." error, write it down, and then Google it to see if you
can get some insight. For example I found this:
http://www.instant-registry-fixes.org/fixing-svchostexe-errors/
This suggests that some of your problems may because of the MS updates. With
your system crashing, fixing problems associated with that is beyond my
ability.
Some things you might try:
Run the Design Checker to see if that finds any problems.
You might set up a new FTP account.
Double check that you aren't running the windows firewall.
You might run the Repair function for Publisher.
Don't upgrade to IE7.
As per the links, the only time I have seen that is if you were using a
Master page, which you shouldn't do in a web publication. Move the content
off the master page.
Give FileZilla a try. Once you use a dedicated FTP client, you won't go back
to IE. And as I suggested when or if you move to IE7, then you are going to
have problems with FTP anyway. I am a bit of an aberration as I don't allow
any IE patches on my computers until they get to SP status, and even then
avoid it unless I have to. This is contrary to what most people suggest and
encourage, but I just find that a lot of these patches just break things.
Perhaps that is what happened to you. But then again, your problems may be
traced back to when your system went down, and the reasons associated with
that. If you download and install FileZilla and set it up, you might be able
to workaround the computer problems...at least it is worth a try.
Since you have messed with the host files, you might log on to your control
panel, and add ".old" to the index.htm file...rename it "index.htm.old" or
index.old and "old" to the index_files folder before trying to upload
again. Then you won't be overwriting your site files that are working. If
you are successful in uploading new files, then go back in and delete the
old files...if not, go back in and remove the "old" part so that you at
least still have your old files working until you figure this out.
Sorry I am not much more help. Hopefully something I said here will lead to
a solution...good luck.
DavidF