DNS Domain for Domino Enterprise Server Install

Hi, We are trying to integrate Domino Enterprise Server 7.0.1 with WebSphere Portal 5.1.0.3. This is for a demo purpose only and so will have to be done on a standalone machine (a laptop). The computer will be on and off the network (on the network during development and off the network when the laptop is taken to the customer’s place). This means the laptop cannot have a DNS domain. Can we install Domino Server without a DNS domain? I have heard that the domain can be entered in the hosts file and then can be used to configure web SSO. Please can someone shed some light on this? Thanks in advance - Deepa Badimala