1. Check that your account+password and serial are correct if you login to WOL. You can see this in the 'Message of the Day'. It will say Invalid Pass or Invalid Serial if it's wrong.
2. If the above doesn't work than try to remove this line of your HOSTS file:
It isn't supposed to be there in default. So unless another program or you or someone else changed it on purpose, i would delete that entry so it will look like this:
# Copyright (c) 1993-2006 Microsoft Corp.
#
# This is a sample HOSTS file used by Microsoft TCP/IP for Windows.
#
# This file contains the mappings of IP addresses to host names. Each
# entry should be kept on an individual line. The IP address should
# be placed in the first column followed by the corresponding host name.
# The IP address and the host name should be separated by at least one
# space.
#
# Additionally, comments (such as these) may be inserted on individual
# lines or following the machine name denoted by a '#' symbol.
#
# For example:
#
# 102.54.94.97 rhino.acme.com # source server
# 38.25.63.10 x.acme.com # x client host
127.0.0.1 localhost
If that still doesn't work than i would suggest re-adding that line again.
PS. Guess you already did this: Check that your firewall isn't blocking Renegade (Game.exe)