Service Restoration deals with restoring a computer to a state where it can safely and securely be given back its network capabilities. This process includes more than just the actual reinstallation of the system. It also includes analyzing the compromised system to determine when and how an intruder gained access and making an image of the system in its infected state for a computer forensics expert to examine. After actually reinstalling a clean version of the operating system and all current vendor patches it is recommended that you disable all unneeded services, install and configure firewall and antivirus software and change all passwords on the system.
For more detailed instructions on recovering from a system compromise please feel free to visit:
http://www.cert.org/tech_tips/win-UNIX-system_compromise.html
http://www.labmice.net/Security/incidentresponse.htm