There is no need to add anything to your hosts file. I suggest removing them.
You should also check to make sure you are forwarding port ranges 7000 to 7100 and 9000 to your server from your router.
Most likely, if you can't zone in, then there is another issue though. I am guessing you are using the AX database. If so, make sure the zone launcher name in your launcher table matches the name in your start.bat file. They should both either be zone or zones but they have to match.
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