Did you reboot after changing HOSTS?
Are you sure the fixit changed it?
My method for editing HOSTS.
Start/Search Notepad. Right click/Send To Desktop (create shortcut)
Right click shortcut, Properties/Compatibility/Run As Administrator.
Then you can open C;\Windows\System32\Drivers\etc\HOSTS and it will allow you to save changes.
You can put a # on any line to 'comment' it out.
There is also 127.0.0.1 webstat.channel4.com
Which would become
'#127.0.0.1 webstat.channel4.com' (without quotes)
However, webstat line is unchanged and I can play the vids.
You could also try disabling any adblock or NoScript type browser extensions/plug-ins you may have and reinstalling latest Flash etc.