>I _think_ there is a problem in line 60 of /etc/netstart
>when there are no /etc/hostname.* files.

I replaced it with the following and it works for me:

    # tmp="$IFS"
    # IFS="$IFS."
    # set -- `echo /etc/hostname.*`
    # IFS=$tmp
    # unset tmp
    set "`ls /etc/hostname.* 2> /dev/null | sed 's/\./ /'`"

The problem was that if you don't have any /etc/hostname.* files, $*
wasn't being set to nothing--it was being set to "/etc/hostname", "*".
With the change I made, $# is equal to 0 and the following while loop
never iterates.

Jan

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