From LQWiki
/etc is the home of most core configuration files in linux. It has details and preferences related to hardware, run levels and just about everything that comes with a barebones kernel install.
Important files in /etc:
- fstab
- group
- grub.conf (GRUB only)
- hostname
- hosts
- inittab
- lilo.conf (LILO only)
- modules.conf
- network/interfaces
- passwd

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