kaldran & gm 9, the posted fix corrected my issue as well. i in the process i think i discovered what causes this on some systems.
if you use a utility like spy bot search and destroy for spyware. it will make the hosts files read only and nothing can get added to it. hence updater wont work.
my other system that it worked fine on the host file was not locked into read only. but when i manually put as read only it blocked the updater on that system as well. so it would seem certain utilities blocks access to these files that the updater needs.
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