Event viewer error "There was an error while attempting to read the local hosts file." but...

Hello,

In event viewer I see many errors like:

Source: DNS Clients Events

There was an error while attempting to read the local hosts file.

I read this threat which indicates to rename the hosts file to 'hosts'

http://answers.microsoft.com/en-us/windows/forum/windows_7-networking/system-log-shows-repeating-error-code-3221225485/3700e855-ded4-4f12-960f-1577f6132c04

HOWEVER, the name of the file in my computer appears as it should

C:/Windows/System32/drivers/etc/'hosts'

and the content of the file is as is supposed to be according to : http://support.microsoft.com/kb/972034

What do I need to do to fix this error?

P.S. I suspect my computer is compromised. Last weekend Security Essentials reported a backdoor malicious file, and it was deleted, but I am experiencing weird behavior from computer

Thank you

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