Update to version 1.2 for Spybot if necessary.
The Hosts file resides in settings, but unless you enable Advanced mode, I think it might be Hell's own job to find it. <G>
I found it like I found all the other computer stuff I "know" - by accident.
<G>
Also, the latest version of Adaware is 6.00, build 6.181. Older versions will not update as I recall.
Spybot is sometimes slow to download updates if busy. Try changing the mirror to a U.S. site if you have difficulties. Conversly, U.S. users should try to use UniDo to take advantage of the time differential. ;-)