What is it?
SiS Keyboard Daemon - khooker.exe

What does it do?
khooker.exe - System Tray utility which gets installed by the drivers of the latter day SiS VGA cards. Can cause errors at startup and isn't required

Virus Precautions:
You'll want to keep an eye on this google search for any known viruses. The normal location of this file is C:WINDOWSSystem32khooker.exe

Also found to be a part of WindUpdates Trojan Downloader. Removal Instructions here.