Hello Chiawaikian,
Thank you for coming on board to try and help me.
I did what you asked and have attached a zipped folder of the Notepad files. Before you go to look at them, please have a look at the zipped GIF image called "Search for Hosts". This is a print out of my search screen. You will see that there are 5 files that contain the word "hosts" in them. I am clearly no expert, but I think files 1 & 3 and 2 & 4 are the same files, just with different paths. Just to be safe I have given the Notepad files different names so you can check them individually. Therefore file 1 (that has the path C:\I386) is designated "HOSTS" and file 3 (that has the path C:\WINDOWS\I386) is designated "HOSTS2". I've done the same with files 2 & 4, giving them the names "LMHOSTS" & "LMHOSTS2". The last file has a completely different path and going by my original virus scan, I think this is the one where the problem may lie. I've called this one "lmhosts3" - please note that it is in lower case.
Hopefully you followed everything I just wrote and it hasn't confused the issue!
I followed all your steps up until number 10. At this point, when I right clicked, I was not given the option to "open with", only "open", so instead of doing that, I dragged the files individually onto blank Notepad files. I think that this will have achieved the same result.
Thanks again.
Mike