Defines the Windows NT authentication hostname. The hostname should be the netBIOS name, as opposed to the fully qualified domain name (FQDN). By default, the first part of the FQDN is the netBIOS name.
If the DHCP (Dynamic Host Configuration Protocol) is used, you would put a suitable entry in the HOSTS file on the Windows 2000 machine.
Name resolution will be performed based on the netBIOS name. If you do not have any server on your subnet supplying netBIOS name resolution, the mappings should be hardcoded. For example, the hostname should be example1 not example1.company1.com.