i also had the problem on 'The Perfect Setup - Ubuntu 6.06'
its not enough to edit /etc/hosts like:
127.0.0.1 localhost.yourlocaldomain localhost
192.168.0.100 server1.example.com server1
......
you also have to edit /etc/hostname
instead of
server1
there should be
server1.example.com
after this everything worked fine on further mysql setup
