Some questions regarding Hostname

  1. Yes, you can give any hostname in /etc/hosts - this name will be known only to hosts and you.
  2. Yes, you can configure this way and have sites with unrelated to hostname names - most shared hosting do the same thing
  3. It doesn't affect nobody except outgoing mail from your VPS to this "intercepted" hostname (it it'll happen) - instead of sending to external Net it will be routed locally
  4. Yes, you can. Edit /etc/hosts and service network restart do all magic