Dmitry,
I'm not sure. You saved the HOSTS file before hitting the URL in IE right? Is it possible your cache had that URL in it?
Which one was it? I can try to duplicate it here.
>Just for kick I put one of your URLs/IP - into my HOSTS file. Then when I put that URL in the IE address, I am asked to enter user name and password. Why is that? I am just trying to understand this, not a trick question.