How does one permanently change hostname ?

[Kim Lux]

I'm doing a lot of sshing these days and it helps if the prompt line
reflects the computer I am working on rather than just saying
"localhost".

How does one permanently display the hostname in the command prompt,
aside from changing the command prompt itself. 

I've tried using "hostname <newname>" and it works until the machine is
rebooted, but then it comes back with "localhost".  I can't
find /etc/hostname either.

How and where is hostname set and how does one alter it ?

Thanks. 

-- 
Kim Lux (Mr.)  Diesel Research Inc