Hey,
I have this problem too.
I went into System > Administration > Network to change some settings and it 
changed my hostname in /etc/hosts from ubuntu to ubuntu.MSHOME.
MSHOME is the network I'm on.
It makes sudo and gksu stop working and the only way I can fix it is by 
restarting the comp and going to root shell and editing /etc/hosts manually.

-Invader Amoto

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[network-admin] appends network name to machine name 
https://bugs.launchpad.net/bugs/122948
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