1.  There is little info about this file; however, I found one report saying
Panda anti virus software reported it to be a trojan.

2.  This file appears to be spyware--here is a recent post by MVP Mike
Maltby:

PCSVC.EXE is not part of Win Me but rather a (malicious) application
installed
as part of Promulgate spyware installed on your system possibly as a result
of
installing a P2P file sharing program. Have you got the Delfin Media Player
from http://www.delfinproject.com on your system?  This is spyware often
associated with installing Kazaa and is often implicated in the error
messages
you are seeing. If present I would suggest you dump Delfin Media Player.
Mode
tails of how to do this can be found at
http://www.kephyr.com/spywarescanner/library/promulgate.pcsvc/index.phtml
********

It looks like you need to do a thorough scan with an up to date anti virus
program followed by a scumware search.

Spyware/scumware/adware are causing numerous system problems.  I recommend
you download and use the following programs and consider removing everything
these programs identify.  Be aware that there are frequent updates to these
programs and you need to check for them before every use.

AdAware:  http://www.lavasoftusa.com/software/adaware/

CWShredder:  http://www.spywareinfo.com/~merijn/cwschronicles.html (download
link near the bottom)

Spybot:  http://www.safer-networking.org/