Is 'localhost' considered fully qualified?
Solution 1:
localhost is not fully qualified; localhost.localdomain. is.
The main key for an FQDN is the terminating full-stop. hostname.example.com is not fully-qualified; hostname.example.com. is. Common convention, if not official standard, says that an FQDN ought to be host.domain. rather than simply host., but again, the important thing is the . at the end to truly by fully-qualified.