Yahoo! and Spy Sweeper question

I have purchased Spy Sweeper and have the latest version of it. Very satisfied with it, I've had it for a little over 2-3 months now. I like all the shields it has to offer, and so forth. However, I use Yahoo! Messenger and the Yahoo! website a lot like a friend of mine on Wilders, but I looked in the "edit hosts file" option in Spy Sweeper and it said the address 'localhost' and the IP address in the Hosts file is - blocked - . So I am just curious by Spy Sweeper doing this, if it blocks Yahoo! from tracking me on the web, and so forth.

I also had a question if the shield in Spy Sweeper called "Alternate Data Stream" (ADS) Execution shield protects me from this kind of stuff also. As well as the tracking cookies shield, the spy installation shield, and the hosts file shield.

Thanks very much, hope someone can help!

TheGuidingLight