MSGSRV32.EXE is a part of Windows 9x/Me. This is a 32 bit message server.? For more information on its function and why it's needed, see here.
Fix MSGSRV32.EXE Errors: Free Scan
( 2 ) "Added by the LITMUS.A TROJAN! Note - MSGSRV32.EXE in this case is in a Litmus sub-directory and is not to be confused with the valid version in C:WindowsSystem"
( 3 ) "Windows 32-bit VxD Message Server. For more information on its function and why it's needed see here. Note - why some people have it listed in start-up programs I don't know but I was asked to include it here. It automatically runs in the background"
Disclaimer
Every attempt has been made to ensure the information about MSGSRV32.EXE is accurate but alot of malware applications try to pose as valid applications. If it is something other than what was posted above please leave some feedback in the forum.
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