However, in Windows 8, I noticed that even under these circumstances, I was still not able to edit and save my changes to the Windows Hosts file!!
As it turns out, Windows 8 seems to have implemented additional security on the Windows Hosts file which requires any text editor (such as Notepad) to be run with Administrative privileges before being allowed to edit and save changes to the hosts file.
This requires simply opening the text editor of choice by using "Run As Administrator" before beginning to edit and save changes to the hosts file.
You can read more about the specific set of steps to accomplish this on Windows 8 here: http://www.petenetlive.com/KB/Article/0000674.htm