I have just encounter the same issue.

I resolved it by adding the ip of eth0 to the /etc/hosts file.

so a hosts file of:
127.0.0.1       server-15.neontribe.co.uk localhost
127.0.1.1       debian
caused the described error exactly

and a hosts file of:
127.0.0.1       server-15.neontribe.co.uk localhost
127.0.1.1       debian
92.60.127.197       server-15.neontribe.co.uk

fixed it.

-- 
hostname bug: does not parse command line options properly
https://bugs.launchpad.net/bugs/253100
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