--- /etc/init.d/hostname.sh	2011-11-02 17:11:20.000000000 -0400
+++ /etc/init.d/hostname.sh	2011-11-03 10:24:28.000000000 -0400
@@ -20,7 +20,7 @@
 . /lib/lsb/init-functions
 
 do_start () {
-	[ -f /etc/hostname ] && HOSTNAME="$(cat /etc/hostname)"
+	[ -s /etc/hostname ] && HOSTNAME="$(cat /etc/hostname)"
 
 	# Keep current name if /etc/hostname is missing.
 	[ -z "$HOSTNAME" ] && HOSTNAME="$(hostname)"
@@ -28,6 +28,9 @@
 	# And set it to 'localhost' if no setting was found
 	[ -z "$HOSTNAME" ] && HOSTNAME=localhost
 
+	# Or set to localhost if hostname is "(none)"
+	[ "$HOSTNAME" = "(none)" ] && HOSTNAME=localhost
+
 	[ "$VERBOSE" != no ] && log_action_begin_msg "Setting hostname to '$HOSTNAME'"
 	hostname "$HOSTNAME"
 	ES=$?