[QUOTE=rabby] "what can i do to become happy with sendmail?"
THAT, I cannot help you with. It does have the reputation of being a bit obscure. I last configured Sendmail about 30 years ago but I guess that it has changed a bit since then.
Have you tried testing your ruleset by hand using /usr/lib/sendmail -bt ?
It will show all the rule firings and their results.
It looks like one of your rules manages to trigger itself indefinitely.
At the debug prompt of Sendmail use
/canon
first.last@yourdomain.com
What I would expect to see is a whole series of "getcanonname" before it gives up with too many recursions (>50). If you cannot figure out the problem immediately, post the results here. If you really want to learn Sendmail, buy the O'Reilly book "Sendmail, 3rd edition ISBN 1565928393", Amazon has copies for a few dollars.