Svchost.exe is infected with Trojan-Proxy.Win32.Daemoniz

I have a Windows 2000 server setup. I am using Kaspersky antivirus in it. There are around 8 workstations. They all are on XP. Kaspersky keeps on giving me a popup message about Trojan infection on my system. After checking the report I found that the module that is causing this virus message is svchost.exe. The virus that was listed is Trojan-Proxy.Win32.Daemoniz. I had not installed anything. I think some of my office person has used a usb by which the virus entered. How can I remove it. The antivirus popup about virus infection does not stops.

There is no information available on that virus. I think you must scan your system in safe mode. That is the only best way to fix the problem. If Kaspsersky keeps on giving you warning then there are chances that virus is not removed completely or it is simply replicating. You must move the same to quarantine. Run a full system scan under safe mode and try to locate the virus files in your system.