This portion explains it all:
The original message was received at Fri, 15 Feb 2008 09:32:52 -0500
from localhost.localdomain [127.0.0.1]
----- The following addresses had permanent fatal errors -----
<xxxxxxx@comcast.net>
(reason: 550 5.1.0 Invalid sender domain)
----- Transcript of session follows -----
... while talking to mx2.comcast.net.:
>>> MAIL From:<root@xxxxxx.localdomain> SIZE=323
<<< 550 5.1.0 Invalid sender domain
554 5.0.0 Service unavailable
It's saying that localhost.localdomain (the Red Hat computer)
received a message from itself. That message says it couldn't
deliver to
xxxxxxx@comcast.net because of an invalid sender
domain. It then shows you the exact dialog that happened,
namely mx2.comcast.net says that xxxxxx.localdomain is not
a valid domain. Thus localhost.localdomain is sending
itself a 554 error, meaning that it can't deliver the message.
The fix for this is configure sendmail to know its proper
domain name or to have sendmail masquerade as its proper
domain name.