The LMHOSTS (LAN Manager Hosts) file is used to enable Domain Name Resolution under Windows when other methods, such as WINS, fail. It is used in conjunction with workgroups and domains. If you are looking for a simple, general mechanism for the local specification of IP addresses for specific hostnames (server names), use the HOSTS file, not the LMHOSTS file.
The file, if it exists, is read as the LMHOSTS setting file. A sample file (lmhosts.sam) is provided. It contains documentation for manually configuring the file.
Windows 95, 98, Millennium Edition
The file is located in %windir%\, and a sample file lmhosts.sam is installed here. The %windir% is an environment variable.
Windows NT 4.0, Windows 2000, Windows XP, Vista, 7, Windows Server 2003, Windows Server 2008 and Windows Server 2008 R2
The file is located in %windir%\system32\drivers\etc\, and a sample file lmhosts.sam is installed here.