Proxy/vpn/alternate dns source and the Windows HOSTS file.
If you are connected to the Internet using a custom dialer provided by your ISP,
through some Local Area Network connection's or a remote proxy server then the hosts setup
steps could do nothing in some cases.
Using a remote proxy server which basically does the DNS requesting for you does prevent
the HOSTS file from being considered.
Work-around to fix this issue:
In IE go to - Internet Options>Connections and choose your connection.
Make sure the box called "bypass proxy server for local addresses" is checked.
Example: click the LAN Settings button, select: Proxy Server
"Bypass proxy server for local addresses", click the Advanced button.
Add" 127.0.0.1 " or " localhost, 127.0.0.1 " click Ok, Ok
If you are not using a proxy/vpn/etc then you can skip this but it will do no harm
to do this step anyway.