syslog server entries showing IP instead of hostname

[Dave Martini]

I'm  using stock syslogd server on RHEL 5 and my server his this daemon 
running:

root      7852     1  0 16:02 ?        00:00:00 syslogd -m 0 -r -x

My clients have

*.* @syslogserver

in their  /etc/syslog.conf

My logs show the IP address for it's entries.
Is it possible to have the entries display the
hostname?

Thanks.
Dave Martini
LLNL