Is mDNS really so useful? Of all the people I know who know about it, everyone has disabled it when possible due to all the useless network traffic it produces. Apparently Canon's wireless printers are well known for doing mDNS floods: http://digitalhome.ca/forum/showthread.php?t=148153 http://forums.anandtech.com/archive/index.php/t-2171044.html
Instead of hacking your /etc/hosts file, just let the VM publish relevant DNS entries using mDNS.