Are the /etc/hosts and /etc/passwd files up to date? The files should include the special relay station name for the mail forwarder, any station aliases, and user accounts for mail users, and so on. If you are using domain names, the /etc/hosts file should use the following format:
ip_address fully_qualified_domain_name alias1, alias2, ...
A common problem with sendmail is that administrators place the aliases before the fully qualified domain name in the /etc/hosts file.