You may have a combination of problems.
Did you edit the hosts file under Linux? I suggest to check if you have non-printable characters:
cat -vet /etc/hosts
Hosts does nothing else than to translate IP to name or vise versa. If the TCP/IP addresses are correct, then your problem is due to routing or lack of physical connection.
How are racnode1-priv and racnode2-priv connected with each other?
To add to the explanation given - 4 bytes are used to storage the 4 digits of an IPv4 address. A byte can have 256 values. Numerically the value range is 0 ($00h) to 255 ($ffh).
The value 302 needs 2 bytes to represent in memory - and is thus not a valid digit to use for an IPv4 address.
IPv4 addresses are also not all equal. E.g. addresses using all zeros, or a trailing zero, is a special address. Likewise there are private address ranges (not to be found on the Internet) that should be used for local network addresses. IPv4 addresses are also defined as different classes (Class A, B and C). Etc.
Be careful in simple typing any digits you like as an IPv4 address. It is tad more complex than selecting and using random numbers to make an address.