Part of the localnet script is setting up the system's hostname. This needs to be configured in the /etc/sysconfig/network. Create the /etc/sysconfig/network file and enter a hostname by running: echo "HOSTNAME=lfs" > /etc/sysconfig/network lfs needs to be replaced with the name the computer is to be called. You should not enter the FQDN (Fully Qualified Domain Name) here. That information will be put in the /etc/hosts file later on.