I have a SLES 11 SP 3 server with SMT 11 SP 3 installed. The SMT server was successfully connecter to SCC and is doing the mirroring as expected. There is however a problem when I try to register to be a client of itself (ie. do it's own updates from the local mirror and not going out on the internet to the SCC). It looks to me like when you try to register against the local host it ignores the /etc/hosts file and try to reach the server thru the proxy server.

cat /etc/hosts ps001.pwv.gov.za ps001

./clientSetup4SMT.sh --host ps001.pwv.gov.za --regcert http://localhost/smt.crt
Signature Algorithm: sha1WithRSAEncryption
4d:dc:99:30:e1:9d:0a:0f:a5:f3:a1:67:a2:3b:d0:ab:96 :ae:
ab:3d:16:75:92:2e:16:81:2f:42:c5:f2:1a:84:c0:d3:aa :52:
ad:41:69:19:80:ac:94:00:b4:4b:3d:2a:08:b9:0a:b3:a7 :59:
01:d8:73:a4:0c:ff:27:af:30:71:01:0b:c6:1b:0b:2d:29 :c8:
8f:6d:4f:ae:a5:51:d8:25:37:88:aa:e1:c3:e1:fe:bc:94 :e5:
2b:7d:3a:7f:26:03:92:ac:66:bc:c1:a9:ab:91:9f:3f:dc :65:
de:3c:34:ac:4d:5f:fe:93:a2:8a:e6:40:5e:d4:3f:94:97 :99:
b4:ba:48:6d:88:7b:eb:de:aa:36:7c:02:23:70:a6:78:85 :a6:
b1:2f:66:09:57:48:8d:50:0b:0e:9d:8d:a7:51:2d:79:52 :ec:
d9:85:1a:d1:02:1c:1a:9f:e1:78:6d:f1:bb:70:74:9f:7e :62:
ab:05:87:f0:b8:27:ea:96:fa:98:fe:b5:48:d3:7a:26:54 :68:
df:63:e0:ff:66:69:48:14:b6:d2:b3:cd:19:cc:bd:7b:44 :21:
31:ed:31:93:3b:47:f3:e3:b3:1a:cd:8f:38:da:11:a2:42 :a3:
d0:47:62:11:03:af:60:aa:14:42:d6:84:a6:77:77:7e:fe :ae:
Do you accept this certificate? [y/n] y
WARNING: Skipping duplicate certificate YaST-CA.pem
Client setup finished.
Start the registration now? [y/n] y
/usr/bin/suse_register -i -L /root/.suse_register.log
All services have been refreshed.
Repository 'SUSE-Linux-Enterprise-Server-11-SP3 11.3.3-1.138' is up to date.
Repository 'Subscription-Management-Tool-for-SUSE-Linux-Enterprise-11-SP3 11.3.3-1.1' is up to date.
Repository 'Subscription-Management-Tool-for-SUSE-Linux-Enterprise-11-SP3 11.3.3-1.1' is up to date.
All repositories have been refreshed.
ERROR: HTTP/1.0 504 Gateway Time-out
Server: squid
Date: Wed, 29 Jul 2015 13:03:00 GMT
Content-Type: text/html
Content-Length: 1148
X-Squid-Error: ERR_DNS_FAIL 0

ERROR: Failure when receiving data from the peer: (56)
ERROR: Failure when receiving data from the peer: (56)

Any ideas how to fix it. I have a proxy defined (needs it to be able to go to SCC). The local server is not defined in a proxy server. Other machines can register to ps001 without any problems.