[BlueOnyx:00772] Problem with SquirrelMail and BO on Virtual Sites

[4137 Group Support]

I have installed and setup BO. I have a virtual site that I am trying to send mail from through SquirrelMail. I can recieve mail fine from it, but when I send to it I get the error:
ERROR: 
Email delivery error
Server replied: 69 Can't execute command '/usr/sbin/sendmail -i -t -ffffarea at localhost'.  
 
When I look in the /var/log/maillog I see the following entries:
Mar 13 14:49:14 webhost3 sendmail[2591]: n2DJnEqe002591: Authentication-Warning: webhost3.4137group.com: apache set sender to fffarea at localhost using -f
Mar 13 14:49:14 webhost3 sendmail[2591]: n2DJnEqe002591: from=fffarea at localhost, size=522, class=0, nrcpts=1, msgid=<4906.67.239.99.49.1236973754.squirrel at www.fffarea.com>, relay=apache at localhost
Mar 13 14:49:14 webhost3 sendmail[2594]: STARTTLS=server, relay=localhost [127.0.0.1], version=TLSv1/SSLv3, verify=NO, cipher=DHE-RSA-AES256-SHA, bits=256/256
Mar 13 14:49:14 webhost3 sendmail[2591]: STARTTLS=client, relay=[127.0.0.1], version=TLSv1/SSLv3, verify=FAIL, cipher=DHE-RSA-AES256-SHA, bits=256/256
Mar 13 14:49:14 webhost3 sendmail[2594]: n2DJnEIZ002594: ruleset=check_mail, arg1=<fffarea at webhost3.4137group.com>, relay=localhost [127.0.0.1], reject=550 5.1.1 <fffarea at webhost3.4137group.com>... User unknown
Mar 13 14:49:14 webhost3 sendmail[2591]: n2DJnEqe002591: to=kshockeyjoe at yahoo.com, ctladdr=fffarea at localhost (509/506), delay=00:00:00, xdelay=00:00:00, mailer=relay, pri=30522, relay=[127.0.0.1] [127.0.0.1], dsn=5.0.0, stat=Service unavailable
Mar 13 14:49:14 webhost3 sendmail[2591]: n2DJnEqe002591: n2DJnEqf002591: DSN: Service unavailable
Mar 13 14:49:14 webhost3 sendmail[2594]: n2DJnEIZ002594: from=<fffarea at webhost3.4137group.com>, size=522, class=0, nrcpts=0, proto=ESMTP, daemon=MTA, relay=localhost [127.0.0.1]
Mar 13 14:49:14 webhost3 sendmail[2594]: n2DJnEIa002594: ruleset=check_rcpt, arg1=<fffarea at webhost3.4137group.com>, relay=localhost [127.0.0.1], reject=550 5.1.1 <fffarea at webhost3.4137group.com>... User unknown
Mar 13 14:49:14 webhost3 sendmail[2591]: n2DJnEqf002591: to=fffarea at localhost, delay=00:00:00, xdelay=00:00:00, mailer=relay, pri=31546, relay=[127.0.0.1], dsn=5.1.1, stat=User unknown
Mar 13 14:49:14 webhost3 sendmail[2594]: n2DJnEIa002594: from=<>, size=1546, class=0, nrcpts=0, proto=ESMTP, daemon=MTA, relay=localhost [127.0.0.1]
Mar 13 14:49:14 webhost3 sendmail[2591]: n2DJnEqf002591: n2DJnEqg002591: return to sender: User unknown
Mar 13 14:49:14 webhost3 sendmail[2594]: n2DJnEIc002594: ruleset=check_rcpt, arg1=<postmaster at webhost3.4137group.com>, relay=localhost [127.0.0.1], reject=550 5.1.1 <postmaster at webhost3.4137group.com>... User unknown
Mar 13 14:49:14 webhost3 sendmail[2591]: n2DJnEqg002591: to=postmaster, delay=00:00:00, xdelay=00:00:00, mailer=relay, pri=32570, relay=[127.0.0.1] [127.0.0.1], dsn=5.1.1, stat=User unknown
Mar 13 14:49:14 webhost3 sendmail[2594]: n2DJnEIc002594: from=<>, size=2570, class=0, nrcpts=0, proto=ESMTP, daemon=MTA, relay=localhost [127.0.0.1]
Mar 13 14:49:14 webhost3 sendmail[2591]: n2DJnEqf002591: Losing ./qfn2DJnEqf002591: savemail panic
Mar 13 14:49:14 webhost3 sendmail[2591]: n2DJnEqf002591: SYSERR(apache): savemail: cannot save rejected email anywhere

When I setup Outlook or Outlook Express to send mail with it everything seems to work fine. It just seems to be a SM issue.

Anyone have any ideas?
Thank You