fogclient.localdomain is just the name the PXE file system is using. The Reason your fqdn isn’t working is probably due to DNSMASQing is not configured for domain name distribution. I could be wrong, but I think you have to use IP for the imaging process. Using hostname is easier to remember, but it also requires DNS lookups to be accurate and updated quite regularly. Remember that the loading of FOG during pxe boot is a very minimal OS and it doesn’t mean that all components work as you expect. I’d stick with setting the IP for your <yourfogserver> section.
