www.007guard.com showing up in localhost connections

I have Win 7 professional, and in task manager's resource monitor, under "Networking", I noticed (with horror) that several of my programs were communicating with "www.007guard.com", some of them being Boinc.exe and Boincmgr.exe (trusted grid computing executables).

At first I thought that I had been infected with something, but a google search led me to this link:

http://overclockedtech.com/?tag=007guardcom

which explains that SpyBot fails to put "127.0.0.1 localhost' as the first entry in the host file list, so that everything hitting 127.0.0.1 was showing up as "www.007guard.com".

I put "127.0.0.1 localhost" as the first entry in the list and everything now is showing up the way it should.

Is what I did correct or not? If so, why isn't SpyBot handling this correctly?

Thanks for your thoughts on this.