/etc/hosts isn't being read

[Josh Paetzel]

I have a stock 6.0-RELEASE box that doesn't seem to be 
reading /etc/hosts

In /etc/hosts I have:

192.168.1.101 example example.example.org

/etc/nsswitch.conf is stock:

group: compat
group_compat: nis
hosts: files dns
networks: files
passwd: compat
passwd_compat: nis
shells: files

$ host example
Host example not found: 3(NXDOMAIN)

$ host example.example.org
Host example not found 3(NXDOMAIN)

What am I doing wrong here that is keeping /etc/hosts from being read?

-- 
Thanks,

Josh Paetzel