Summary: The "hosts" file can be used for good or evil. Anti-malware programs may use it to block things, and malware may use it to block anti-malware.
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The "hosts" file is a common target of spyware, because it's a way to force your computer to bypass DNS, and re-route web addresses, or block them entirely.
But it's also a useful tool for other purposes as well. So how to know what's what?
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In this case, without seeing the entries, it's hard to say.
The good news, unless you actually did something to your hosts file yourself, chances are the only entries there are the result of spyware.
I would:
Related:
Ask Leo! - Is there a way to block certain URL's in IE?
Ask Leo! - What are "LSASS", "LSASS.EXE" and "Sasser" and how do I know if I'm infected? What do I do if I am?
Article C2337 - April 21, 2005