Novell Client 2 for Windows Vista/2008
Novell Client 2 SP1 for Windows Vista
Novell Client 2 SP1 for Windows 7
Novell Client 2 SP1 for Windows Server 2008 R2
The Novell Client for Windows Vista/7/2008 uses the Microsoft-provided DNS provider, instead of a Novell-proprietary provider, as was the case with the Novell Client for XP/2003. Windows has always considered the ETC/HOSTS file to be part of the DNS name resolution provider. As such, the HOSTS file is always consulted first before making a DNS query on the wire.
So "host file" is always being used, and there is no way to separate it (except to the degree that Microsoft supports configuration of their own DNS provider).