hi smushy - welcome to slyck
yes, the changes you made look correct. however, you need to be sure of a couple of other things.
first. be sure you edited a file called just "hosts" and not a file called "hosts.sam" - which is a sample file which looks identical. windows never reads that file, so if you inadvertantly change it, the changes have no effect. one way to be sure this is not the case is by selecting "details" in the view menu for windows explorer for that folder - then you will see the full filename, extension included if appropriate.
once you're sure you're editing the correct file, the next issue can occur when you go to save it. notepad defaults to saving files as .txt - so if you let it do what it wants to do, it will save hosts as hosts.txt, which windows will ignore. when you go to save the file, use the "save as" option, instead of just "save". at the bottom will be a dialog which says "save as type" - it will default to .txt - and that's what you don't want. pull down the arrow and select "All files (*.*)" - and then save it. then you should be in business