#1 Hit the nail on the head but didn't drive it deep enough. According to RFC 1035, the supported naming convention is letters, numbers and a hyphen. Microsoft relaxed enforcement on this standard to allow you to name your computer whatever you want. But if you expect to do DNS zone transfers with other organizations (and you will if you're connected to the internet), they most probably will NOT be running MS DNS and your server name record will be invalidated and no one outside your DNS scope will ever resolve to it.
Read MS article Q222823.
I'd change it to a hyphen and move forward from there.
Good Luck
0bytes