You can't simply use any hostname you wish in eggdrop.
You need access to the machine/node that the hostname resolves to (in this case, there is no IP so no node). As well as this, the IP this hostname resolves to, must also resolve back to the hostname.
EG
host newsup29.free-online.co.uk
newsup29.free-online.co.uk has address 212.159.100.245
host 212.159.100.245
245.100.159.212.in-addr.arpa domain name pointer newsup29.free-online.co.uk.
Unless you can acheive this, which you may well have to pay your ISP or shell provider for, and not all provider supply this, then it will not work.
Alternativly, simply set the value of my-ip, and ignore the my-host setting.