Correct on the WINS answer, but remember that it's the short name "mymachine.foo.com" just gets registered as "mymachine". LMHOSTS is the just a local file on your machine that you can manually enter entries on, much like HOSTS is a way to enter DNS names.
WINS and LMHOSTS are primarily leftovers from NT4 - Win2K+ using Active Directory depend on DNS, not WINS.
- G