With a hosts file Chrome takes too long to realize that 0.0.0.0 isn't real
I usually use 127.0.0.1, for that reason. 0.0.0.0 actually has semantics that are different from real addresses, which can lead to unwanted behavior like this.
In other news, one IPV6 rolls out, you can use the 100::/64 block for what you're trying to do.