Yoh,
in /.rhosts it should be root host1, and also to /etc/hosts.equiv.

it will make a difference

$hostname
hosts2
$ cat .rhosts
root host1
$cat /etc/hosts.equiv
root hosts1

#hostname
hosts1
#remsh hosts2 -l root uptime
09:53AM up 89 days, 1:04, 2 users, load average: 0.07, 0.09, 0.10

Thanks it will work dude