Your hosts file looks good
there is no problem in having this entry in your host file
Don't remove this line or any others above it
127.0.0.1 localhost
The only problem I see now is CWShredder running as a service, it has file not found from what appears to be a floppy drive
I would guess that CWShredder flagged your bad hosts entries earlier and needs to have your machine restarted, it will run as a service when it want to run on next startup
You don't appear to need to run CWShredder at this time
I would suggest that you
Go to START>>>RUN>>>type in services.msc
Hit OK
In the next window, look on the right hand side for this service
name---- CWShredder Service
Double click on it--- STOP the service--If running
In the drop down menu, change the startup type to Disabled
Next:open Hijackthis>>Open misc tools section>>Open "Delete an NT Service"
Copy and paste the next line in bold to the new blank box and hit OK
CWShredder Service
Restart your computer and post one last hijackthis log, let me know if everything is running fine now
