~jhs/public_html/src/bsd/fixes/FreeBSD/src/jhs/etc/sendmail/common_submit.cpp

FreeBSD-6.1/usr/local/share/doc/cyrus-sasl/Sendmail.README extract:
   Add the following before FEATURE(msp) in your sendmail 8.12 submit.mc file:
   DAEMON_OPTIONS(`Name=NoMTA, Addr=127.0.0.1, M=EA')dnl
   This disables SMTP AUTH on the loopback interface. Otherwise you may get
   the following error in the log:
        error: safesasl(/usr/local/etc/sasldb) failed: Group readable file
   when sending mail locally (seen when using pine locally on same server).

I havent done anything about the above yet.