Here’s another comment from Slashdot that I found very useful.
When I use Google or any other search engine, all of the links in the results go directly to the actual site. It is not redirected in any way. Therefore even Google does not know which link I clicked, or whether I clicked any at all. With the measures I mentioned above, the site I visit has no idea that I got there from Google. It looks to the site like I just opened a new browser window and directly typed its URL into the Address bar no matter how I actually got there.
I’ve always felt that if your business model relies on getting information about me against my will, then your business model deserves to fail. I’ll add too that the actual security issue is the vulnerability of Windows browsers to what the summary describes as “aggressive attempts to install” these fake anti-virus programs. The measures I describe above do not provide real computer security — they provide human privacy. In this case, however, they make it much harder for the sites in question to target you because their “targeting data” is based on first compromising your privacy.
NOTE: An updated copy of ‘Hosts’ file for Windows can be found at http://www.mvps.org/winhelp2002/hosts.htm