The error occurs when a BSP application is unable to resolve a fully qualified domain name in the format “hostname.companyname.com”
A typical example would be when you use transaction SOAMANAGER in ABAP and the following URL is opened in your browser

http://hostname:port/sap/bc/webdynpro/sap/appl_soap_management?sap-language=EN

The above example is actually an ICF service being opened as a BSP in the browser.

More on ICF services and SOAMANAGER in a later blog..

My VM is set up using the loopback adapter with an IP address assigned to it, with no domain name.. aka the quick and dirty method.

There are two possible options to resolve the above error, if you are a cowboy you can hack the CX_FQDN class in transaction SE24 so the system does not bother what domain name the web applications are accessed from or you can add your OS to a domain and add the icm/host_name_full parameter in transaction RZ10.

I chose the second option as i wasn’t too keen on hacking my CX_FQDN class.
Adding your computer to a domain in windows is simple:

1 Right click on My Computer–>Computer Name tab–>Click Change       
2 Click More–>Enter your domain name in the format “companyname.com” under the section Primary DNS Suffix of this computer–>Click OK until you have exited

The following needs to be done in the SAP system:
3 In SAP use transaction RZ10 to edit the instance profile
4 Select the instance profile–>Extended maintenance and Click Change
5 If the parameter icm/host_name_full does not already exist, add it by selecting Create Parameter–>Under Value add the Fully Qualified Domain Name in the format “companyname.com”
6 Select Copy to apply the change to the instance parameter, go back and then Save until you notice the version number of the the profile increasing by one.
Changes to the instance profile are not dynamic so you need to restart the WAS                       
7 Once the WAS has been restarted and a BSP page is called you should see the FQDN you specified in the instance profile.

Note:The domain name the you specify does not have to be “real” as it is not registered anywhere outside of of your VM.