Please explain the function of 'Generic Host Process for Win32 Service, & 'Services and Controller app' ?

The reason for my interest is that I have a simple peer to peer network with 2 Win2000 PC and 1 WinXP and I am using ZoneAlarm as a fire wall. When connecting to the Internet as a stand alone PC I did not allow either of these applications to act as servers (allow server in Zonealarm parlance), but did allow connection for both local and internet zones. It seems that both these applications require both 'connect' and 'server' rights to allow other PCs to fully share internet access beyond e-mail. I would therefore like to know how they act related especailly to security?

My thanks in anticipation.