Macbook Pro 13", only a month old, just updated to OS Lion, never used facetime before. The version is listed 1.1
This solution worked for me however, before I did all this, I followed the instructions on this other link (https://discussions.apple.com/thread/3189014?answerId=15690054022#15690054022) so I don't know if that helped facilitate the process or not. Here's what I did:
After I followed the instructions from the other link to add the new keychain password, I opened the host file in text edit and it made me make a duplicate to edit. I erased everything except for what the original post says - so all it had was the below:
##
# Host Database
#
# localhost is used to configure the loopback interface
# when the system is booting. Do not change this entry.
##
127.0.0.1 localhost
255.255.255.255 broadcasthost
::1 localhost
fe80::1%lo0 localhost
After, I saved it to my desktop as hosts with no .txt at the end. Went back to my /etc folder and renamed the hosts file there to OLD HOSTS, it asked for my password. Then I moved the file I saved to my desktop to the /etc folder, it asked me for my password to authenticate. Facetime worked great. Then I was able to do these steps again to copy back what I had taken out in the first step, and facetime still worked.
Good luck everyone.