Thanks--no need to apologize--there aren't any dumb questions here.
I'm glad you mention Spybot Search & Destroy.
The hosts file is an ancient name resolution facility--it is a mechanism
that allows the OS to convert names to IP addresses, and is used before the
more complex name resolution mechanisms of the Internet.
This prompts different responses in malware writers and anti-malware
writers. The malware-writers stuff the hosts file with entries equating
www.symantec.com, for example, with 127.0.0.1--which is your machine. Thus
you can't reach Symantec/Norton for help when you find their antivirus app
has been disabled.
The anti-malware folks do the reverse. They stuff it full of sites known to
distribute spyware or viruses or dangerous in other ways--again equating the
site names with your local machine--thus keeping you from reaching those
sites by name even when you click on a link.
I believe you were seeing this kind of entry--which can be unexpected and
scary to find in your machine, but which is intended as a safety aid.
My own preference is to keep that file empty with just the default entry,
but this is a matter of taste--many others here do it differently.