Ok I have gotten a little further now but I still have a problem.
I know my Linux box is resolving the mail server IP using DNS and can commutate. The Error I get now is “reply: read error from domain name” I get this error on two different Linux boxes one running FC2 and the other running FC4. The funny thing is I can send mail from one Linux box to the other just fine but not to the exchange server.

I put a sniffer on the line and can see that the Linux box is resolving the domain name to the MX record for email. I have talked to the exchange administrator and he has no errors on his side.

Why will exchange not receive mail from sendmail? It works fine on the internet.

So, DNS is working and your Linux box knows how to go from hostnames to IP addresses via DNS lookups.
What about rDNS (reverse DNS)? Did you install the reverse DNS zone as well?

Some mail servers use rDNS to combat spam. They do so by checking if the sender's IP address can be translated back to the domain in the sender's e-mail address.

RDNS is fine. I Run across some info on my linux box that makes me question if the two servers are speaking the same language. I saw a references to ESMTP on my linux box. I am thinking the exchange server only speaks SMTP and does not know how to handel ESMTP.

I could test this if I only knew how to disable ESMTP on the linux box so it would only speak SMTP.

Can Any one tell me how to disable ESMTP with Sendmail?

From what I read via Google, sendmail should drop down to standard SMTP if ESMTP isn't supported.
However, according to http://www.coruscant.demon.co.uk/mik...il/basics.html, the mail delivery agents
for SMTP and ESMTP are defined in sendmail.cf.
Maybe you could edit this file and for instance comment out the ESMTP delivery agent's definition?

Please make sure that you can easily revert back though (ie keep a backup copy of the original sendmail.cf), as I'm not sure this will work.

you are right the sendmail.cf file in the /etc/mail dir is the config file for sendmail. Its not easy to read and I have not found any place to disable ESMTP.

I found this information and think it might be part of the issue
http://www.sendmail.org/faq/section3.html#3.20

I did what it said and added my information to the mailertable It did not work. I am hoping to disable ESMTP and test that next.

I found on google groups that I need to Add new F=2 mailer flag to disable use of ESMTP, using SMTP instead.

The only issue Is I don't know where to add this mailer flag in the sendmail.cf

Have you ever seen this file its not friendly at all.

Yeah, sendmail is notorious for being tricky to configure (it can involve m4 macros and stuff like that).
I haven't done it myself, so I can't help you with it.

On the link I provided, the entry in sendmail.cf is mentioned where the ESMTP is configured. It should on a line that starts with "Mesmtp". Can you find this line in your sendmail.cf?
If you can, then maybe you can add the F=2 option there?