Comment 1 for bug 346503

Thank you for taking the time to report this bug and helping to make Ubuntu better.

Putting extended ascii characters is really not a Good Idea™, many applications will not expect this when they parse your hostname.

See RFC1178 "Choosing a Name for Your Computer" http://tools.ietf.org/html/rfc1178
Don't use non-alphanumeric characters in a name.

         Your own computer may handle punctuation or control characters
         in a name, but most others do not. If you ever expect to
         connect your computer to a heterogeneous network, you can count
         on a variety of interpretations of non-alphanumeric characters
         in names. Network conventions on this are surprisingly
         nonstandard.

and http://tools.ietf.org/html/rfc3696#section-2 for a more in depth reasoning.

If you set your hostname back to plain 'hostname' (or any other alpha-numeric name) does the issue resolve itself?