okay I was told to do complete spy/adware check, I did but it didn't help. Refer to this to learn a bit more about my problem. http://www.techspot.com/vb/showthread.php?p=161685 I cleaned quite a lot of stuff with adaware and some with HJT but nothing helped. An interesting thing I learnt though is that when booting in safe mode without network enabled, my problem was solved - services.exe did not use processor. When I, however, booted in safe mode with network, services.exe started taking processor again. With normal mode it still uses 50% of processor. Log is attached down there.