Are the entries that show up in Hosts File entries that Spybot will block by clicking on "Add Spybot S&D Hosts List" or are they entries that indicate that a computer has been compromised.
Only Host File entries that are listed with ip : 127.0.0.1 will be blocked. For even better protection I sugest that you replace your Host File with the one you can find here , and add the Spybots entries to it.
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