I am getting an error from Sendmail that saying "Relaying is denied. 
IP name is possibly forged." with my IP number on it.

I guess I'm not real clear on the file that I need to edit to permit 
local users to use this machine as an SMTP server.

I looked at the /etc/hosts file and inserted the IP set there, but 
I'm not real familiar with how to set it up with Sendmail.

Does Sendmail use /etc/hosts, or which file does it use?

The version is 8.12.8 on Yellow Dog Linux.

Thanks,

Chris