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> Also it shows as localhost in sendmail logs output.

> This may not be a problem but in the past before starting to fiddle
> with bind my logs always showed the right host name... in this case
> chub.local.net0. (or just chub in the logs)

Far as I know the rc files that control host name are set correctly.
On Gentoo linux they are:

cat /etc/conf.d/hostnam
====
   # /etc/conf.d/hostname
   # Set to the hostname of this machine
   HOSTNAME="chub"
====
and /etc/conf.d/domainname

cat /etc/conf.d/domainname
=====
   # /etc/conf.d/domainname

   # When setting up resolv.conf, what should take precedence?
   # If you wish to always override DHCP/whatever, set this to 1.
   # OVERRIDE=1

   # To have a proper FQDN, you need to setup /etc/hosts 
   # and /etc/resolv.conf properly (domain entry in 
   # /etc/resolv.conf, and FQDN in /etc/hosts).
   DNSDOMAIN="local.net0"

   # This only set what /bin/hostname returns.  If you need 
   # to setup NIS, meaning what /bin/domainname returns, 
   # please see:
   # http://www.linux-nis.org/nis-howto/HOWTO/
   NISDOMAIN="local.net0"
======