smitfraud-C found by Spybot

I ran spybot - just a routine check- an it found a bunch of stuff, one of which was Smitfraud-C. It reapired everything. I came to Majorgeeks, and performed the steps in smitfraud removal. I used SmitfraudFix. It ran ok. then I rebooted in to normal mode and two odd things happened:
1) my desktop is now blue/green instead of the ususal windows fields
2) Winpatrol by Bill P asked me two questions:
a) my default webpage was being resest, did I want to allow this (No)
b) my HOSTS was being changed from 127.0.0.1 to a blank page. (When i viewed the hosts files the old one said 127.0.0.1 the new one said nothing) I figured this was some thing Smitfraud Fix did so I accepted it - I hope I was right!

I attached the two txt files Smitfraud fix creates, rapport1 is the search, rapport2 is the fixed.

Question: Is everything ok now?
Do I need to fix or set the HOSTS again?