So, I think I may have resolved it. Not 100% sure yet. I played with the security on the hosts file and got it enabled so spybot could immunize it. The strange thing was, when I first went into the file I didn't notice how long it was. The top of the file looked totally normal, but something had gone in and put 6 entries about 200 lines down. So I removed that, immunized with spybot and then changed the security to actually DENY the ability for anyone to write to it.
Back track a touch... I did the spybot immunize and then went and surfed around a little and those entries appeared again in the hosts file. So I removed them again and then did the DENY part. I just checked again and the entries have not been put back yet. I still want to scan again for the trojan that keeps coming back but I think the main problem might be gone with the lockdown on the hosts file.