[Juser] errors while configuring Jabber1.4.2 server

[Nagappa]

Hi!
  I configured the hostname from "localhost" to my machine's ip address in
jabber.xml as it is given in Jabberd 
Administration Guide, but i am getting the following error.I wanted to test it
in a LAN. It is working properly for 
localhost.
 
          20030917T09:57:49: [notice] (-internal): initializing server
          20030917T09:57:49: [notice] (localhost): dropping looping dns lookup
request: <presence   
          from='jsm at update.jabber.org/1.4.2' to='localhost' type='error'
iperror=''><error code='502'>Unable to resolve 
          hostname.</error></presence>
      
  Regards,
Nagappa