setting host name

[Don]

I have FC1 installed on two machines and I use ssh to log on from one to
the other ...

in the command window, each prompt is [don at localhost don]

How can I name each machine so the prompt will identify the machine I'm
on?

I tried using the hostname command, but that didn't seem to work as I
wanted.

Logged on as root I entered: hostname natasha
and the command appeared to work.... but then when I tried to start a
console/terminal session, no window was displayed... I restarted the
machine (shutdown -r now) and things reverted to the way they were... I
could start a terminal window again, but again, the prompt says
localhost.

Any suggestions, or have I happened onto a bug?

Thanks,
Don