Unable to resolve localhost

[Shawn Kovalchick]

I'm trying to set up a postgresql server on FC2, and it seems that the server
is unable to look up 127.0.0.1.  Further investigation shows that dig
is unable to return anything for localhost or a reverse lookup for
127.0.0.1.  /etc/hosts has an entry for 127.0.0.1 pointing to
localhost and localhost.localdomain.  Am I missing something?

Relevant sections of configuration files follow:

/etc/nsswitch.conf contains this line:
hosts:      files dns

/etc/hosts contains:
127.0.0.1  localhost  localhost.localdomain

I apologize if this has been double posted, it appears that the
initial post didn't take, as I was not yet signed up on the list.