> /etc/hosts has nothing to do with what the real hostname. It's better if it
> does list the name, but that's not required.

if /etc/hosts has nothing to do with what the real hostname is. then why in 
the /etc/rc.config file right above the statement:

FQHOSTNAME=blah.hostname.com 

does it state:

Hostname of the system (full name)
Don't forget to edit your /etc/hosts appropriately

and BTW, thx George for the clue to /etc/rc.config. 
 

> /etc/HOSTNAME is probably either read or written at boot time, but should
> otherwise be ignored.

sl in SuSE is YaST the preferred way of making system changes?

slr