Hostname Help

[user1599]

Unable to determine the host or domain name of your computer.
Setting it to localhost.localdomain
/var/tmp/rpm-tmp.33806: line 1863: server1=localhost: command not found
/var/tmp/rpm-tmp.33806: line 1864: (none)=localdomain: command not found
Unable to resolve host name.
Please specify the host name in the /etc/hosts file
or specify DNS configuration in the /etc/resolv.conf file on your system.

ERROR while trying to check the hostname
Check the error reason(see log file: /tmp/psa_8.1.1_cos4.build81070322.16_installing.log), fix and try again

Aborting...

error: %pre(psa-8.1.1-cos4.build81070322.16.i586) scriptlet failed, exit status 1
error: install: %pre scriptlet failed (2), skipping psa-8.1.1-cos4.build81070322.16
ERROR: Error while execute command rpm -U /root/swsoft/PSA_8.1.1/dist-rpm-CentOS-4.2-i386/base/psa-8.1.1-cos4.build81070322.16.i586.rpm
Errors just before:
- Error while execute command rpm -U /root/swsoft/PSA_8.1.1/dist-rpm-CentOS-4.2-i386/base/psa-8.1.1-cos4.build81070322.16.i586.rpm

I follwed this article and it didnt work http://kb.swsoft.com/article_17_397_en.html

when I type hostname it is server1.xxx.net


in the etc/hosts it is
# Do not remove the following line, or various programs
# that require network functionality will fail.
127.0.0.1 localhost.localdomain localhost
69.xx.xx.x10 server1.xx.net server1


any my network file is

NETWORKING=yes
HOSTNAME=server1.xxx.net

can anyone help me?