Hostname configuration on DHCP/DNS server: /etc/hosts vs. /etc/hostname

[Niki Kovacs]

Hi,

I have a DHCP/DNS server (Ubuntu 10.04) running on my local network. The 
domain name is the dummy "presbytere.montpezat" for all the local 
machines. Of course the server has a static network configuration in 
/etc/network/interfaces.

Here's how /etc/hosts is configured:

127.0.0.1 localhost.localdomain localhost
192.168.1.2 proliant.presbytere.montpezat proliant

Now I wonder what I should put in /etc/hostname. I think it should only 
be this:

proliant

But now I wonder if I should put the FQDN in it, like this :

proliant.presbytere.montpezat

If I remember correctly, that's how my Red Hat servers were configured. 
Anybody knows the "right" (or at least the orthodox) way to do this?

Cheers,

Niki