In addition, during the initial install, the user is presented with the FQDN of the host and asked if they wish to change the domain name - that would be the time to enter the required domain name.
So, the answer to the questions are: a) no, the installer isn't broken and b) you need valid local DNS A & MX records for the primary domain name that the server hosts.
These questions and answers have been covered many times in the forums.
__________________
Regards
Bill
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