I was interested in the implications of your question and had a chat to Nigel about it today.
Here is a summary as I understand it. At present, after installation and initial connection, the client uses two different methods to locate a server - Multicast or WINS. For the multicast method, the client sends out a multicast, with the next step being a response back from the server and connection based on the certificate. If there was no useful response from the multicast attempt, the client makes a request to the Windows Internet Name Service (WINS) for the server.
WINS (
Windows Internet Name Service) does not provide domain hierachies like DNS does with FQDN's. This statement is a bit frankensteinian, but basically WINS and DNS are different animals. At present the client does not query DNS (directly) at all, so if we did use an fqdn here, it really would not help much.
There is something else worth mentioning here as well. The human readable server name you see in the certificate, and also the server name displayed in the ghost client tray icon, may not actually be the current host name of the server which has the correct certificate, and which the client will eventually reach and successfully connect to.
The WINS query is based on the server name supplied in the encrypted part of the certificate. Even if the server name has changed, because the server name is registered with WINS during server installation, WINS will locate the machine. Ideally, if multicast is working happily in your network, this will hopefully remain a detail.
Don't consider my comments on this subject as authoritative though. Nigel Bree has a large number of posts which go into the detail of the discovery and communication process. If you are experiencing some problems or challenges in the area, I would urge you to examine those posts in detail.
Message Edited by Xan Todd on 08-02-200705:26 PM