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Found this after an update and scan!
svchost.exe was using 50% CPU and lost network/internet connectivity
Seems the HOSTS file was so large it caused a dns cache overload or something.
Removed most of the entries MAD by SPYBOT and everything is back to normal
Sounds to me more, as if you have some Spyware / Junkware or PuPs on your System, which try to contact the Internet in background.
Since some of this sites /urs might be blacklisted from Spybot, this connections cannot be resolved, but because the Adware trys again and again, this ends up in a loop.
As you removed the entrys in the Hostfile, the connections could be resolved again and the loop did end.
However, i would recommend a full Scan with Spybot to remove unwanted entrys.