I just wanted to come back and report. I end up using the ftp option in the upload options. Since I have ftp backup file to the "newuser20" account. I just have to setup ftp option in the restore >> upload. And to my surprise it works. I did managed to restore all but two data was corrupted. For some reasons it was empty.
So back to the "unknown host" thing. I did a fresh installed of Centos 6 and changed the hostname right away before I install Kloxo-MR. It sticks. I reboot as many times no problem.
I guess it was not the server that not allowing it to stick. There's something to it. I don't know.
Anyway, I will keep my eyes on this. Now it's time for this.
http://forum.mratwork.com/kloxo-mr-tips-and-tricks/kloxomr-optimize/