xxx.xxx.xxx.xxx www.google.com
Which would redirect any attempts to connect to www.google.com to the IP address specified by xxx.xxx.xxx.xxx
So no, the hosts file put out by the PIE team is not going to hijack anything except connection attempts to winmx. Technicly the reidrection of winmx to the functioning servers is a hijack, whether it's done by a modified hosts file or by a DLL. If in doubt, feel free to look at your hosts file.
As for what server you're being connected to, it will be one of the peer cache servers set up by WinMX users since Frontcode (company that made WinMX) pulled the plug on their servers. For an explanation try here: http://www.vladd44.com/phpbb2/viewtopic.php?t=5898

