Cannot send mail to root@localhost but can externally

hello,

I need to configure our AIX 5.3 to relay mail to exchange.

I have got this working with no issues yet, I can not send mail to root@localhost.

# uname -a
AIX Blade1 3 5 0000E6DAD400
# oslevel -s
5300-07-01-0748

# mailq
                /var/spool/mqueue (2 requests)
----Q-ID---- --Size-- -----Q-Time----- ------------Sender/Recipient------------
mBEM6C4G770094        5 Mon Dec 15 11:06 root
                                         root
mBELqpnv978960        5 Mon Dec 15 10:52 root
                                         root
                Total requests: 2
# sendmail -bi
Warning: .cf file is out of date: sendmail AIX5.3/8.13.4 supports version 10, .cf file is version 9
/etc/mail/aliases: 3 aliases, longest 9 bytes, 46 bytes total
# echo "test" |sendmail -v root@localhost
Warning: .cf file is out of date: sendmail AIX5.3/8.13.4 supports version 10, .cf file is version 9
root@localhost... Connecting to local...
/dead.letter... Saved message in /dead.letter

The .cf file is the original one and has only had the Dwechangeserver added
I have found some mentions saying the sendmail version needs to upgraded to a newer version, this is not something I can do on this server.

I can post lots of config if needed.

Can someone tell me what I need to do to get this working. Or send me a working config?

what does the log show? Is localhost defined in /etc/hosts?

tail -50 /var/adm/ras/mail.log

# tail -50 /var/adm/ras/mail.log
/var/adm/ras/mail.log: A file or directory in the path name does not exist.

mail.log does not exist.
I have

BosMenus.log bosinstlog config.diff.266396 errtmplt platform vgbackuplog
SRCKeyID cfglog conslog image.data swma.response
bootlog codepoint.cat devinst.log lvmcfg.log trc_ct
bosinst.data config.diff errlog mtrcdir trcfile

what is the output of this command

mailx -v root@localhost </dev/null

# mailx -v root@localhost </dev/null
No message, no subject; hope that's ok
root@localhost... Connecting to local...
/dead.letter... Saved message in /dead.letter

From root Mon Dec 15 16:02:24 2008
Return-Path: <root>
Received: (from root@localhost)
by Blade2.amsco.co.nz (AIX5.3/8.13.4/8.13.4) id mBF32OQM1421362
for root@localhost; Mon, 15 Dec 2008 16:02:24 +1300
Date: Mon, 15 Dec 2008 16:02:24 +1300
From: root
Message-Id: <200812150302.mBF32OQM1421362@Blade2.amsco.co.nz>
To: root@Blade2.amsco.co.nz

does it work if you omit the @localhost?

what is the output of the below comands?

grep localhost /etc/hosts
ps -ef|grep sendmail

I sould mention I am infact working on 2 servers both the same os and setup. Mail does not work to root@localhost on both of them.

# sendmail -bv root
root... deliverable: mailer local, user root

# sendmail -bv root
root... deliverable: mailer local, user root
# grep localhost /etc/hosts
127.0.0.1 loopback localhost # loopback (lo0) name/address
# ps -ef|grep sendmail
root 1228870 98376 0 14:49:14 - 0:00 sendmail: accepting connections

Also for your information

# lssrc -s sendmail
Subsystem Group PID Status
sendmail mail 1228870 active

# \grep localhost /etc/hosts
127.0.0.1 loopback localhost # loopback (lo0) name/address
# ps -ef|grep sendmail
root 1228870 98376 0 14:49:14 - 0:00 sendmail: accepting connections
root 1388616 733404 0 16:22:16 pts/0 0:00 grep sendmail

can you enable mail logging in /etc/syslog.conf ? This would provide additional information.

Please post the contents of the /dead.letter file?

# cat /dead.letter
From root Mon Dec 15 16:32:32 2008
Return-Path: <root>
Received: (from root@localhost)
        by Blade2.amsco.co.nz (AIX5.3/8.13.4/8.11.0) id mBF3WW2r1265812
        for root@localhost; Mon, 15 Dec 2008 16:32:32 +1300
Date: Mon, 15 Dec 2008 16:32:32 +1300
From: root
Message-Id: <200812150332.mBF3WW2r1265812@Blade2.amsco.co.nz>
To: root@Blade2.amsco.co.nz

I have turned on syslogd but no log file as of yet.

# echo "test" |mail -v root@localhost
Warning: .cf file is out of date: sendmail AIX5.3/8.13.4 supports version 10, .cf file is version 9
root@localhost... Connecting to local...
/dead.letter... Saved message in /dead.letter

# cat /dead.letter
From root Mon Dec 15 16:32:32 2008
Return-Path: <root>
Received: (from root@localhost)
by Blade2.amsco.co.nz (AIX5.3/8.13.4/8.11.0) id mBF3WW2r1265812
for root@localhost; Mon, 15 Dec 2008 16:32:32 +1300
Date: Mon, 15 Dec 2008 16:32:32 +1300
From: root
Message-Id: <200812150332.mBF3WW2r1265812@Blade2.amsco.co.nz>
To: root@Blade2.amsco.co.nz

From root Mon Dec 15 16:36:46 2008
Return-Path: <root>
Received: (from root@localhost)
by Blade2.amsco.co.nz (AIX5.3/8.13.4/8.11.0) id mBF3akXl1421448
for root@localhost; Mon, 15 Dec 2008 16:36:46 +1300
Date: Mon, 15 Dec 2008 16:36:46 +1300
From: root
Message-Id: <200812150336.mBF3akXl1421448@Blade2.amsco.co.nz>
To: root@Blade2.amsco.co.nz

test

you need to create the file that you specified for mail.*, then refresh -s syslogd

# cat syslog
Dec 15 16:45:51 Blade2 mail:info sendmail[1421484]: mBF3jpaD1421484: from=root, size=25, class=0, nrcpts=1, msgid=<200812150345.mBF3jpaD1421484@Blade2.amsco.co.nz>, relay=root@localhost
Dec 15 16:45:51 Blade2 mail:info sendmail[1421484]: mBF3jpaD1421484: to=root@localhost, ctladdr=root (0/0), delay=00:00:00, xdelay=00:00:00, mailer=local, pri=30025, dsn=5.3.0, stat=unknown mailer error 1