Has the duplicate host name issue always been there or did it just arise with the intermingling of Amahi server?
Don't know, I'm afraid. I wasn't aware of it until I started looking for other problems from the server control panel.
Is the host name on the VL system displayed duplicated like that, or is this only when viewing your network from the server?
Conky shows it correctly (locally). I'll have to see if I can see what it looks like from the desktop. However, whatever the error is, it is consistent to VL systems - I've just tried it under Light and also the SOHO beta. In both cases, it shows up doubled. Looking at any of the other systems (Zenwalk or Salix) and they show up without the doubling.
I'll have to look further - I thought that HOSTNAME and hosts set the host name, and both of them look consistent with the other installs.