Odd - hostname should resolve once the WAN/LAN is up and running...
cat system
config system
option hostname 'openwrt'
option timezone 'PST8PDT,M3.2.0,M11.1.0'
option zonename 'America/Los Angeles'
option ttylogin '0'
option log_size '128'
option urandom_seed '0'
option log_proto 'udp'
option conloglevel '8'
option cronloglevel '7'
config timeserver 'ntp'
option enable_server '1'
option interface 'lan'
option use_dhcp '0'
list server 'time1.google.com'
list server 'time2.google.com'
list server 'time3.google.com'
list server 'time4.google.com'