Rule of thumb customs regarding FQDN and home lan's

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http://www.linuxquestions.org – I am setting up a more complex home network with a client server architecture and I was wondering what is the general customs for FQDN in private intranet's. Is the full domain name for say a node 'server' or is server.somethingelse . All of my nodes are on the same subnet and I am setting up a private dns server to act as resolver for my intranet and outgoing internet connections / caching properties and I do not want to cause some sort of odd conflict. (HowTos)