the host file is fine, nothing but the modifications we need.
I thought I had fixed the problem by removing and installing internet explorer but it reappeared recently. Malware sweeps have fixed the problem but it appears as though its still trying to reroute some web pages then fails with the "user terminated" message.
The only reference to the error message ive found through googling is this firefox support question http://support.mozilla.com/en-US/questions/895076
And the user is using internet explorer 8 in an XP environment. Its almost like theres an old registry value trying to connect through a proxy.