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Services.exe hangs

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Whenever I dial up a connection (such as an AOL or a private RAS connection), my computer hangs. On checking in the Task Manager, I notice that services.exe is at a 100% CPU utilization. When I cancel the dialup connection, it returns to normal operation.
I'm running Win2K Professional. Was running SP1 when the problem was occurring - upgraded to SP2 but the problem still persists.
Please help

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