Vigor10 & /etc/hosts file.

Recently installed FC3 on XP dual boot pc. PC shares ADSL access via Draytek
Vigor2600 router/modem (which is set up, ieDHCP, to assign an IP address of
each PC connected).

During latter stages of boot, I see the word "Vigor10" above time/date, then
I get message "unable to look up internet address for Vigor10. This will
prevent Gnome from operating correctly. It may be possible to correct the
problem by adding Vigor10 to the file /etc/hosts".

What exactly does this mean? Is it being suggested that I add "Vigor10" to
the localhost line? Clearly the pc does not have a fixed address as it is
set by the router each time it is switched on. The router itself has an
address but only to gain access to its setup facilities.
Help much appreciated.