I know the hosts file should be under
C:\Windows\System32\drivers\etc\
But for some reason, I don't have the etc directory there at all. In fact, I searched for "hosts" under C:\Windows and found nothing.
I have a Windows 7 64bit installation and yes, I checked in Control Panel\Folder Options that I can see hidden files.
Best Answer
It seems this folder has some strange hidden attribute on it. I have show hidden files and folders and show protected operating system files on, and I couldn't browse to it. However if you actually type it into the address bar you can get there!
(After doing this, I now /can/ browse to it, so I can't test other folder options settings to see what makes it show up.)
EDIT: For clarity, tested on Windows 7 Ultimate x64.