Issue: Running torque.setup or trying to set a manager (or operator) in qmgr returns an error like this:
qmgr obj= svr=default: Bad ACL entry in host list MSG=First bad host: mgmtnode
ERROR: cannot set TORQUE admins
Solution: Torque looks up the canonical name of the host and checks to confirm that one was supplied when setting "operator" and "manager" permissions (as seen in qmgr) for the server host. So if you don't want to use the FQDN, you can make an entry for the machine in /etc/hosts.
Important note: if you see this following an upgrade, make sure the trqauthd process was stopped prior to putting the new binaries in place. If that got missed, send a SIGTERM to the trqauthd process (kill -9), and then start the service again. This alone may resolve the problem.