remove localhost from /etc/hosts??

[Neal Becker]

Installing gridengine seems to fail with:
Starting qmaster installation!
Hostname: nbecker6
Aliases:  localhost.localdomain localhost 
Host Address(es): 127.0.0.1 


The current hostname is resolved as follows:

Hostname: nbecker6
Aliases:  localhost.localdomain localhost 
Host Address(es): 127.0.0.1 

It is not supported for a Grid Engine installation that the local hostname
contains the hostname "localhost" and/or the IP address "127.0.x.x" of the
loopback interface.
The "localhost" hostname should be reserved for the loopback interface
("127.0.0.1") and the real hostname should be assigned to one of the
physical or logical network interfaces of this machine.

Installation failed.

/etc/hosts says:
# Do not remove the following line, or various programs
# that require network functionality will fail.
127.0.0.1	nbecker6	localhost.localdomain	localhost
::1		localhost6.localdomain6 localhost6

What's the deal here?  I thought that removing localhost would, as the 
comment in /etc/hosts says, cause lots of problems with various 
applications.