Is it a fresh installation? rpm will not overwrite any configuration files left over from a previous version of sendmail so it might be worth erasing sendmail, cleaning out (take a backup copy, just in case) the /etc/mail directory and re-install sendmail.
As root:
# rpm -e sendmail
# cp -a /etc/mail /tmp/mail
# rm /etc/mail/*
# rpm -ivh sendmail
# service sendmail start
Hope that helps.
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