Wether you use LMHOSTS files or not, a missing or corrupt LMHOSTS service key will generate:
<b>
   Event ID 7003
   Source: Service Control Manager
   Description: The Net Logon service depends on the following nonexistent
   service: LmHosts

   Event ID 7003
   Source: Service Control Manager
   Description: The Computer Browser service depends on the following
   nonexistent service: LmHosts</b>
To fix the problem, remove and reinstall the TCP/IP protocol.