Just a small point here.....
The Hosts file should not have an extension, eg ".txt". It should just be Hosts.
To open it, right click it and select "Open with..." and then select Notepad. But remember, when you want to save it, goto File > Save As, and in the Save As window, click the down arrow under "Save as type:", and select "All files", then make sure the name being saved is just Hosts, and not Hosts.txt.
But a question about the ad. When you open the AT&T browser where does this ad display? Is it a web page, or does it display in a toolbar or something?
If it's a web page you could try changing your Home Page to something else, but if it is in a toolbar then that is because it is AT&T's customised version of Internet Explorer and you would need to find the registry entry to change it.
You could always use your own version of Internet Explorer in Start > All Programs > Accessories, or, better still, download, install and use a different browser altogether, like Firefox. It has less vulnerabilities than IE or any customised version of IE.
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