thanks guys.. particularly tip on shutdown -a for when i kill svchost.exe !
Seems I must of done some good as don't see any more outbound connections since i used Comodo Firewall Pro 3 and some tracking cookies (probably not the culprit) and removed 2 dll files guard32.dll and pmxgl32.dll which were being called from registry.
Windows Registry Editor Version 5.00
Not sure what it is or whether it's the problem as some of the free anti-spyware tools were also introducing fake or false positive virus detections in order for you to buy their removal programs!
So while I seem to have fixed the symptoms, the indentifcation of the actual worm/trojan is still unknown heh