Sendmail user question

Hi All

I am trying to deal with a problem. Any suggestions would be helpful!

I have sendmail running on a Redhat 8 box and is serving about 75 e-mail accounts. Version Info:
OS:Red Hat Linux release 8.0 (Psyche)
sendmail-8.12.8-9.80
sendmail-cf-8.12.8-9.80

There are a few users that need pop accounts so I have created user accounts on the system for them. I have however made /var/spool/mail as the home directory for all of them.

The other users are essentially aliases to these few accounts.

I keep getting the following in the maillog:

Oct 31 10:32:08 Spitfire2 sendmail[23123]: j9VFW8i7023122: forward /var/spool/mail/.forward.localhost: Group writable directory
Oct 31 10:32:08 Spitfire2 sendmail[23123]: j9VFW8i7023122: forward /var/spool/mail/.forward: Group writable directory

Does this have something to do with the setup I have? I have read the FAQ on the sendmail site that tells me to set the following option, to get rid of this message:
DontBlameSendmail=forwardfileingroupwritabledirpath

Is there a way to have users logon to their pop3 accounts to download without having user accounts on the mail server?

Please advice!

Thanks

KS