The "127" probably is coming from 127.0.0.1, your loopback IP address. How that ended up in your /etc/HOSTNAME I don't know. You can out and out delete /etc/HOSTNAME and next time you boot you will be darkstar again, if you like, with a new /etc/HOSTNAME created for you. There's a lazy fix for you
not the best fix though because if there is a conflict with /etc/hosts, there might be some whinging from some scripts complaining "hostname cannot be found".