dfssvc.exe (dfssvc stands for Distributed File System Service) is a Windows NT/2000/XP generic process used for managing a Distributed File System, which is a file system whose components are spread out over a local or wide-area network.
The process dfssvc is not in any way a virus, a worm, a Trojan horse, spyware, or adware.
The process dfssvc.exe can be terminated.
