Vista - Hosts file is being ignored.

I've always used the hosts file to map local machines in our private ip
network behind the firewall for web browser connectivity. My new Vista
business appears to be ignoring its hosts file. Using ipconfig to /flushdns
and then /displaydns should show the contents of the hosts file and it does
not except for the default localhost. I even changed the localhost ip in the
hosts file to something else, but the correct loopback ip still shows up in
/displaydns
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HS Hardy III