malware?

But what about the entries in the registry under EscDomains ? From my internet searches about EscDomains it seems all these bad sites are exempted and are placed in the "safe internet". Should I really delete them from the registry or is there somewhere else in W 7 that I can go to tell W7 these are not safe and good sites?

Is there any connection between the hosts file and EscDomains ?

I think the hosts file is being by-passed by the registry entries. When I run nslookup I get

C:\Users\JSM>nslookup 007guard.com
Server: UnKnown
Address: 192.168.1.1
Non-authoritative answer:
Name: 007guard.com
Addresses: 208.72.2.179
208.72.2.180
208.72.2.186
208.72.2.187
208.75.252.106
208.75.252.107
208.75.252.108
208.65.130.26
208.65.130.27
208.72.2.18
208.72.2.19
208.72.2.20
208.72.2.178
So even though 007Gurad.com is the very fist list in the hosts file, things seem to be getting through and the hosts file is being bypassed somehow. That is why I am asking about those resComains listings.

OK, everything is solved! The porn and other sites listed under the registry's zonemap (Esc Domains and Domans) are part of Spybot's protection system. It adds these to the registry as well as to the hosts file. So all is well (I think). As I said MBAM, Avast and others find nothing bad on my system.

Still worried about the nslookup results.