Never mind,  my friend just told me how to correct it. 
Apparently in you just have something like HOSTNAME=joe
then sendmail uses localhost.localdomain, but if you
change HOSTNAME=joe.somedomain.org, then sendmail will use
the joe.somedomain.org hostname.

Did that make sense or have I stayed up too late again
tonight and am just rambling ...

Jim Streit

> I just recently did an install of sendmail 8.11.6 on
> RedHat 7.3.  Email works fine, but when I telnet to the
> server address on port 25 I see:
>
> 220 localhost.localdomain ESMTP Sendmail ...
>
> Note the localhost.localdomain, on my other sendmail
> server I see the machines hostname.  I have already
> checked the etc/sysconfig/network file and made sure
> that the setting HOSTNAME= is correct.
>
> Has anyone with sendmail experience seen this before and
> know how to correct it?
>
> Thanks
> Jim Streit
>
>
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