Personally the URL Blocking isn’t up to or designed for this job.

There are many browsers, firewalls and browser tools or extensions that do a better job of blocking adverts. Firefox with the AdBlock plus and maxthon with AdHunter and the Hosts file as you mention. My firewall has and ad blocker function (disabled) as the other ad blockers work so well, at least better than the firewalls plug-in.

I would have thought that there would have been some form of ad blocker plug-in that works with IE7.