The Server Service issue is still causing quite a stir on the internet. Ensure that you have fully updated your system as to not be infected by "Conficker" or its several variants.
- F-Secure: http://www.f-secure.com/v-descs/worm_w32_downadup_al.shtml
- Symantec: http://www.symantec.com/security_response/writeup.jsp?docid=2008-112203-2408-99&tabid=1
- Sophos: http://www.sophos.com/security/analyses/viruses-and-spyware/w32conficka.html
In order to fix this issue, you need to patch your system using the latest update fix version: http://www.microsoft.com/technet/security/bulletin/MS08-067.mspx
In order to remove the problem, you can use Microsoft’s own removal tool or anything else offered from the company links above: http://www.microsoft.com/security/malwareremove/default.mspx
Regardless of what you do or how you choose to go about it, fix/patch/prevent.