If editing the tnsnames.ora file, the whole application does not need to be restarted. The file will be rescanned and new information will be displayed when the connection window is opened (or closed and reopened). The Toad session and connections do not have to be closed.
If working with a tns setup that uses a local ifile to point to networked tnsnames.ora file then it is necessary to exit TOAD and restart. Toad will not go out through the network to rescan the network file untill Toad is closed and reopened.