Ok... I guess the HOSTS file is not an option... in case anyone's encountered a similar problem, here's the solution I came up with to work-around this issue :)
I'm using Nokia 5800 XpressMusic and my QA server runs on a Mac.
- installed a proxy server on my Mac (I used Squid)
- configured my phone's WLAN access point to use the new proxy server
- configured a "hostname.local" domain on my Mac (using the machine's HOSTS file)
- accessed my QA server via the hostname.local domain from the phone over the phone's WiFi connection
works great...
If anybody knows a simpler solution, I'd still be happy to hear about it...
Ori