What has been said is correct. svchost.exe is what many viruses/Trojans/worm, etc use as a name. It is also a valid Windows process, but it MUST be in the System32 folder for it to be a Windows process as Cookieman and marsmimar said, ANYwhere else its not a friend.
You might consider removing McAfee, it has been causing issues with many posters here. Download MalwareBytes as suggested, and SuperAntiSpyware, links in my sig. Update each and run a full scan with your other AV's turned off.
AVG has been found really buggy too. You may want to use Microsoft Security Essentials (again, in my sig) instead of anything else you have. The downloads suggested don't use real-time so they are OK to use with other security.
Correction: MSE does have real-time protection.