Found this in Man dhcp-options (5):
       option host-name string;

          This option specifies the name of the client.  The name may
or may not be qual‐
          ified with the local domain name (it  is  preferable  to
use  the  domain-name
          option  to  specify  the domain name).  See RFC 1035 for
character set restric‐
          tions.  This option is only honored by dhclient-script(8) if
the  hostname  for
          the client machine is not set.

This would seem to indicate there being an expectation that hostname
for the client machine would normally be set at th time that
dhclient-script runs.  Furthermore, if it were the send host-name
"foobar" would not override it.  Is it possible that dhclient is being
run by init BEFORE the the init script that sets up the $HOSTNAME and
/etc/hostname?  That would certainly explain this behavior.  Anyone
know?


-- 
Be who you are and say what you feel, because those who mind don't
matter and those who matter don't mind.  - Dr. Seuss
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