lmhosts file
Remember: the lmhosts file equates the IP address with the NetBIOS
name for the Microsoft Networking functions such as browsing, drive mapping,
file and print sharing, etc. It is the static version of a WINS server
and is practically mandatory for optimal operation in the absence of a
WINS server (a service that runs under NT server only).
Like the hosts file, lmhosts is placed in the \windows folder for Windows
for Workgroups 3.11, Windows 95/98 systems and placed in the \winnt\system32\drivers\etc
folder for Windows NT systems. It must not have a file extension such
as ".txt". It is named just plain "lmhosts". Place
a copy on every system.

lmhosts example 1
With an NT domain the lmhosts file will resemble
this:
192.168.12.1 myntdomsvr #PRE
#DOM:mydomname
192.168.12.1 "mydomname
\0x1b" #PRE
192.168.12.2 wrkstation1 #PRE
192.168.12.3 wrkstation2 #PRE
192.168.12.4 wrkstation2 #PRE

lmhosts example annotated
192.168.12.1 myntdomsvr
#PRE #DOM:mydomname
This line represents an NT Server PDC (Primary
Domain Controller) with the NetBIOS name of myntdomsvr, an NT domain
name of mydomname and an assigned IP address of 192.168.12.1.
The #PRE flag causes preloading during system startup eliminating the
need for the system to examine the lmhosts file for those preloaded items
thereby improving performance. It's fairly typical to use the #PRE flag
for all entries on smaller networks (the preloaded information is stored
in memory and for large networks this may not be ideal) and especially
for all servers or those systems acting as servers, i.e. sharing files
or printers. The #DOM flag is only used for the NT domain controller.
It is imperative that the #PRE and #DOM flags be capitalized.
192.168.12.1 "mydomname
\0x1b" #PRE
This statement is needed in the lmhosts file
of systems that do not perform the NetGetDcName API, currently Windows
for Workgroups 3.11 and Windows 95 systems, to allow the client browser
service to explicitly find the PDC defined above. The tricky
part is that there must be exactly 15 characters between the open quote
and the backslash, the domain name starts immediately after the open quote
and spaces pad to the backslash for the total 15 characters.
These first two lines will not be used in networks without an NT PDC.
192.168.12.2 wrkstation1
#PRE
Standard workstation entry stating the IP address
(192.168.12.2) and NetBIOS name (wrkstation1)
of this workstation, then preloading it (#PRE). For non-NT domain
networks these will be the standard entries.
192.168.12.3 wrkstation2
#PRE
See above.
192.168.12.4 wrkstation2
#PRE
Important!
You don't see it here but be sure to hit "enter" after typing
in the last entry as the file must terminate with a carriage return.

lmhosts example 2
With no NT domain (peer-to-peer) the lmhosts
will resemble this:
192.168.12.2 wrkstation1 #PRE
192.168.12.3 wrkstation2 #PRE
192.168.12.4 wrkstation2 #PRE