Agreed on the server troubles over the weekend. What I did to prevent getting the hostname from my provider is put a router in between that does NAT and DHCP (fixed hostname for the clients). No idea whether that's possible with a dial-up.
BTW, lizzy's /etc/hostconfig (10.5.5) does not contain a "HOSTNAME=..." line. It does contain the line "This file is going away". Also, netinfo does not exist as such anymore since 10.5, it's been merged into the Directory Services. You can inspect the database using dscl(1) in the Terminal.
Lizzy is now on her third consecutive WU without problems. I sure hope it stays this way. The last thing I tried was to put localhost and lizzy after every suitable IP address in /etc/hosts. This is my current setup:
127.0.0.1 localhost lizzy
255.255.255.255 broadcasthost
::1 localhost lizzy
fe80::1%lo0 localhost lizzy[/code'..']
The biggest difference between time and space is that you can't reuse time.