hostname change breaks X - how to connect 127.0.0.1 ?

[Tero Karvinen tero _dot_ karvinen atta iki _dot_ fi]

When hostname is changed, X can no longer open windows. I think
this could be fixed by making X connect to 127.0.0.1, but I don't 
know how to do this.

To repeat the problem:
$ xterm 
(xterm opens normally)
# hostame xbreaker
$ xterm
 Xlib: connection to ":0.0" refused by server
 Xlib: No protocol specified
 xterm Xt error: Can't open display: :0.0
(xterm does not open)

XFree86 has the same problem. I have seen this on Redhat 8, Redhat 9, 
Fedora Core 1 and Fedora Core 2 on different computers and networks.
Searching google, groups2, gmane and asking in #xorg, #freedeesktop and
#xwin did not help. I have found bubble gum solutions, such as restarting
X and setting hostname to localhost, but they interrupt work and cause
other problems. 

How can I make X work normally when hostname keeps changing?

-- 
Tero Karvinen http://iki.fi/karvinen tero karvinen atta iki fi