If your building it on a machine with the name freddy there is no need to include that hostname.
Try
Code:
database bdb
suffix "dc=domain1,dc=com"
rootdn "cn=Manager,dc=domain1,dc=com"
rootpw {SSHA};lasd9320jf30j30j03j09jf0jf0jf340jfio34
directory /var/lib/ldap/domain1.com
The you can add users in cn=People,dc=domain1,dc=com.
They will be organized like:
uid=username,cn=People,dc=domain1,dc=com
You want the suffix to reflect the domain, not the host serving it because that could always change in the future.