HI,
There are several ways of doing this.
In Terminal the sudo vim bit will tell the Terminal to find the Vim editor and use it on the file involved.
You don't have to download it from anywhere.
nano is just another editor that Terminal can access and use to open the file for editing.
Some people just right click the Hosts file and use the Open With option and use TextEdit to edit the file.
On Saving it tends to ask you if you want to replace (yes) the existing file.
This method can be a bit of an issue about having the right sort of Permissions to do this (it is why most people use Sudo in Terminal as this overrides the permissions - sudo is like say "use Super User" to do this)
9:46 PM Tuesday; November 20, 2012
Please, if posting Logs, do not post any Log info after the line "Binary Images for iChat"
iMac 2.5Ghz 5i 2011 (Mountain Lion 10.8.2)
G4/1GhzDual MDD (Leopard 10.5.8)
MacBookPro 2Gb (Snow Leopard 10.6.8)
Mac OS X (10.6.8),
Couple of iPhones and an iPad
"Limit the Logs to the Bits above Binary Images." No, Seriously