As I said.
1. I have no idea as to the contents of his host file or what he does with it, unfortunately I have any idea what e-Dexter does. If this is some form of proxy, then that and web shields proxy may need to be put into some sort of order.
2. The operative words in the quote is could interfere, not knowing the contents or how he uses his hosts file, I couldn't say it would interfere.
If you are using the hosts file and e-Dexter whit web shield, perhaps you can let us know your settings.