diff -ru NetworkManager-0.7.0.orig/src/NetworkManagerPolicy.c NetworkManager-0.7.0/src/NetworkManagerPolicy.c
--- NetworkManager-0.7.0.orig/src/NetworkManagerPolicy.c	2008-11-12 22:29:43.000000000 +0100
+++ NetworkManager-0.7.0/src/NetworkManagerPolicy.c	2008-11-19 21:14:52.049100794 +0100
@@ -24,6 +24,7 @@
 #include <errno.h>
 #include <netdb.h>
 #include <ctype.h>
+#include <regex.h>
 
 #include "NetworkManagerPolicy.h"
 #include "NetworkManagerUtils.h"
@@ -332,6 +333,21 @@
 	g_string_free (new_contents, TRUE);
 	return success;
 }
+static char *findHostNameMatch(const char *inputString) {
+	if(!inputString) return NULL;
+        char pattern[50]="HOSTNAME[ ]*=[ \"]*([a-zA-z0-9]+)[\"]*";
+        regmatch_t pmatch[2];
+        int start=0, end=0;
+        regex_t predicate;
+        if(regcomp(&predicate, pattern, REG_EXTENDED) ||
+                regexec(&predicate, inputString, 2, pmatch, 0) ||
+                pmatch[1].rm_so < 0 || pmatch[1].rm_eo < 0 )
+                return NULL;
+        start=pmatch[1].rm_so;
+        end=pmatch[1].rm_eo;
+        if(start>=end || end > strlen(inputString) ) return NULL;
+        return strndup(&inputString[start], end-start);
+}
 
 static void
 set_system_hostname (const char *new_hostname, const char *msg)
@@ -339,6 +355,24 @@
 	char old_hostname[HOST_NAME_MAX + 1];
 	int ret = 0;
 	const char *name = new_hostname ? new_hostname : FALLBACK_HOSTNAME;
+       if (!new_hostname) {
+               static char* sysconf_hostname = NULL;
+               char *contents = NULL;
+               gsize contents_len;
+               GError *error = NULL;
+               if (!sysconf_hostname && !g_file_get_contents (SYSCONFDIR "/conf.d/hostname", &contents, &contents_len, &error)) {
+                       nm_warning ("%s: couldn't read " SYSCONFDIR "/conf.d/hostname: (%d) %s",
+                                   __func__, error ? error->code : 0,
+                                    (error && error->message) ? error->message : "(unknown)");
+               } else if (!sysconf_hostname) {
+                       sysconf_hostname = g_strstrip(contents);
+		       sysconf_hostname = strstr(sysconf_hostname, "HOSTNAME");
+                       sysconf_hostname = findHostNameMatch(sysconf_hostname);
+               }
+               if(sysconf_hostname)
+                       name = sysconf_hostname;
+       }
+
 
 	old_hostname[HOST_NAME_MAX] = '\0';
 	errno = 0;