HOSTS is in C:\WINDOWS\system32\drivers\etc
HOSTS is usually only used by people who are impatient, want redundancy,
or on an internal network. If your DNS server is working then you dont
really need to use this file. Go to Start | Run | type cmd and hit
enter. A black dos window should appear. In that window type in
"ipconfig" and if your ip address starts with a 0 or a 169 then you are
not connected. If your ip address starts with a 192 a 172 or a 10 then
you are probably using a router and probably just need to power cycle
everything including the router, your isp can tell you how. Now type in
"ping 66.218.71.198" and hit enter if you get replies you are connected
to the internet. Now type in "ping yahoo.com" if you get replies now
then your dns server is working. If you are not able to get replies in
either case then you probably want to reinstall the drivers for your
network card or modem.
If you are able to get replies in both cases then do these steps: Go
into Tools | Internet Options | Connections Tab, then remove all the
settings there where it says "dialup and virtual private networking".
Click on the LAN settings button below and make sure all that stuff is
*UNchecked*. Then go back to the connections tab and hit the setup
button and run the internet connection wizard again. At this point if
you dont know what to do then call your isp or local system admin person
and they will walk you through it.