Microsoft bypasses HOSTS file.
Yep, seems that they don't want you blocking MS sites. They site the reason as protection and security but if one reads into this, there seems to be many more implications. Here are the hosts that they will not allow you to bypass via host files. Again, it's from BugTraq and I have not had time to verify each one.
This info came from BugTraq:
DomainScreenList:
windowsupdate.microsoft.com
windowsupdate.com
microsoftupdate.com
download.microsoft.com
update.microsoft.com
HostsScreenList:
microsoft.com
www.microsoft.com
support.microsoft.com
wustats.microsoft.com
microsoftupdate.microsoft.com
office.microsoft.com
msdn.microsoft.com
go.microsoft.com
msn.com
www.msn.com
msdn.com
www.msdn.com
A quick check suggests that this behavior debuted with XP SP2, and is
present on 2003 SP1 as well. (I haven't looked at 2003 RTM, but it
would be interesting if someone please would.)
--Th13