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Since I see .ad. in your DN I guess your mail servers are MS exchange servers no?
In which case I dont see what you are configuring in sendmail.cf...
the DS line is indeed the (only) one that you need to complete... but it may be that your mail server uses aliases for its services, something like SMTP.compname.com...
Are you using what you can see in "options" from outlook? in which case it is not that obvious... for instance we have 16 servers and all have .ad. etc DN but to relay from unix we have one address as in my previous mail configured for the boxes that need to send mails (but only internal... users outlook...). This is because most servers have port 25 disabled and almost all switches/routers also, so it is on fully documented requiremnet that port is openened from on point to destination... for security reasons... So I suppose it will ask for more serious investigations for you...
Good luck