lshost.exe is typically a hidden file that comes in with Micro$loth Windoze.  I thought it was a Unix hijacking, but it's Micro$loth's own spyware.  javascript:emoticon(':evil:')
Evil or Very Mad  It is a LicenSe host watcher.  I'm not exactly sure what it is or what it does, but it sends and receives licensing information, probably to Micro$loth itself regarding your system.  So, if you have pirate Micro$loth junk onboard, you might consider dumping it and replacing it with a freeware version that's not written by anything in Redmond.  Best yet, dump Winblows and replace any Winmodems, sound cards, and video cards with a hardware modem, SB16, or generic video card, add memory and a bigger hard disk, and run exclusively Linux or Unix.  FreeBSD has good ratings, too, but 'nixes are still better.  Unfortunately, I am stuck (temporarily) on this Dell laptop.  It's fast, and I have it hacked well enough that it works for now. 
