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This item discusses the various modes of Computer Identification and which you should choose.
To select the method by which your computers will be identified, navigate to System->Configuration->Computer Identification.
Currently, you can identify your computers by MAC (Ethernet) address, IP address or Host name (reverse lookup).
Choose MAC address if you have a flat address space and only one network address block. If you are uncertain, then normally, this will be true if the only router you have on your network is the one that connects you to the Internet.
If in doubt, or if you have internal routers, or users on separate VLANs or VPNs then you should choose IP address identification.
Host name is a good choice if either you don't require computer policies internally, but have external consultants signed up with a DDNS system or your internal DNS servers are configured to return a computer's hostname when it detects its IP address.
Make your choice and click Set Options.
Note: If you had already imported or otherwise added computers, and subsequently change the setting here, all computers are erased.
It is important to check this setting and get it right, even if you will not be creating any computer groups or importing any computers. In particular, you will get an error if you choose MAC based identification and a computer on a routed connection tries to authenticate via the CensorNet.