@curaga
Yes that patch helped (I wasn't expecting "some assembly required"  

). Might I also suggest the following for /usr/bin/sethostname:
--- /usr/bin/sethostname
+++ usr/bin/sethostname
@@ -12,7 +12,12 @@
 echo $HOSTNAME >/etc/hostname
 hostname -F /etc/hostname
 rm -f /etc/hosts
-cat >/etc/hosts <<EOT
+# add entries for each UP interface
+for a in /sys/class/net/[ew]*; do 
+        e=$(basename $a)
+        ifconfig $e | grep -q '^[[:space:]]*UP ' && ifconfig $e | grep 'inet addr:' | cut -c21- | cut -d\  -f1 | sed "s/$/ $HOSTNAME/"
+done >/etc/hosts
+cat >>/etc/hosts <<EOT
 127.0.0.1 $HOSTNAME localhost localhost.local 
 # The following lines are desirable for IPv6 capable hosts
This adds an entry for each UP interface to /etc/hosts. I realize it might be an issue if using DHCP and the address changes, but I haven't gone down that rabbit hole yet. Is my request 
http://forum.tinycorelinux.net/index.php/topic,19923.0.html for an updated busybox with a larger syslog buffer going to be in the next release?