I recently discovered an infection by Virtumundo trojan, which apparently lead to other similar infections of various names, I ran spybot SD 1.6 to clear the infections and was informed at the end of the fix that all items had been sucessfully removed, however after restarting, the afore-mentioned infection continued to plague my system.

Now I've noticed that there was an issue with my global hosts list in that spybot SD immunisation would not verify the entire list, even after selecting a restored version from spybots restore list.

I've also noticed that all items in the list have the same IP address 127.0.0.1

Is this correct or do I have yet more issues to resolve?
can anyone shed some light on this?