Problem configuring network

[Phil Meyer]

Knute Johnson wrote:
[snip]
>
> [root at knute knute]# cat /etc/hosts
> # Do not remove the following line, or various programs
> # that require network functionality will fail.
> ::1     localhost.localdomain   localhost
> 192.168.3.5     knute.sagebrush.frazmtn.com     knute
[snip]

There is also a problem here:
You have the IPV6 localhost defined, but not the IPV4.
The IPV4 is necessary since you are using an IPV4 address.
Put this line back in there:

127.0.0.1   localhost.localdomain   localhost

The other respondents are pointing you to an already used IP, but this 
also needs to be fixed.

Good Luck!