How to load squid was Re:localhost

[Karl Larsen]

    I got the ip of localhost corrected and know what it is used for. 
But that is not the problem. I want to use squid to process data going 
to my Firefox but it will not load on my Ubuntu. Here is what it says:

Unpacking squid-common (from .../squid-common_2.6.14-1ubuntu2.1_all.deb) ...
Selecting previously deselected package squid.
Unpacking squid (from .../squid_2.6.14-1ubuntu2.1_i386.deb) ...
Setting up squid-common (2.6.14-1ubuntu2.1) ...
Setting up squid (2.6.14-1ubuntu2.1) ...
Creating squid spool directory structure
FATAL: Could not determine fully qualified hostname.  Please set 
'visible_hostname'

Squid Cache (Version 2.6.STABLE14): Terminated abnormally.

So I need a 'visable hostname' but know that the ip is 127.0.0.1


Karl