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Check your type of shell first. Enter something stupit and see the rror message:
{{{
$ blabla
-bash: blabla: command not found
}}}

! Bash shell:
[docu|http://www.linuxselfhelp.com/howtos/Bash-Prompt/Bash-Prompt-HOWTO-2.html]
{{{
$ PS1="\u@\h \w> "     
root@hostname /etc> 
}}}
Store permanently in /etc/profile, /etc/bashrc, ~/.bash_profile, and ~/.bashrc\\
~ means home folder.

!Korn shell
{{{
PS1="`uname -n` \$PWD> "; export PS1
}}}
Store permanently under ~/.profile