Hi I am have problems with aithentication from outlook and my sendmail server will not relay my e-mails

bellow is a copy of my sendmail-mc

SASLv2 is installed and running
sendmail -d0.1 -bv root | grep SASL
NETUNIX NEWDB NIS PIPELINING SASLv2 SCANF SOCKETMAP STARTTLS

but when I telnet to test sendmail
i get this and there no authentication listed

250-server.test.com Hello server.easyinkz.com [127.0.0.1], pleased to meet you
250-ENHANCEDSTATUSCODES
250-PIPELINING
250-8BITMIME
250-SIZE
250-DSN
250-ETRN
250-DELIVERBY
250 HELP

divert(-1)dnl
dnl #
dnl # This is the sendmail macro config file for m4. If you make changes to
dnl # /etc/mail/sendmail.mc, you will need to regenerate the
dnl # /etc/mail/sendmail.cf file by confirming that the sendmail-cf package is
dnl # installed and then performing a
dnl #
dnl # make -C /etc/mail
dnl #
include(`/usr/share/sendmail-cf/m4/cf.m4')dnl
VERSIONID(`setup for linux')dnl
OSTYPE(`linux')dnl
dnl #
dnl # default logging level is 9, you might want to set it higher to
dnl # debug the configuration
dnl #
dnl define(`confLOG_LEVEL', `9')dnl
dnl #
dnl # Uncomment and edit the following line if your outgoing mail needs to
dnl # be sent out through an external mail server:
dnl #
dnl define(`SMART_HOST',`smtp.your.provider')dnl
dnl #
define(`confDEF_USER_ID',``8:12'')dnl
dnl define(`confAUTO_REBUILD')dnl
define(`confTO_CONNECT', `1m')dnl
define(`confTRY_NULL_MX_LIST',true)dnl
define(`confDONT_PROBE_INTERFACES',true)dnl
define(`PROCMAIL_MAILER_PATH',`/usr/bin/procmail')dnl
define(`ALIAS_FILE', `/etc/aliases')dnl
define(`STATUS_FILE', `/var/log/mail/statistics')dnl
define(`UUCP_MAILER_MAX', `2000000')dnl
define(`confUSERDB_SPEC', `/etc/mail/userdb.db')dnl
define(`confPRIVACY_FLAGS', `authwarnings,novrfy,noexpn,restrictqrun')dnl
define(`confAUTH_OPTIONS', `A')dnl
dnl # <added>
TRUST_AUTH_MECH(`DIGEST-MD5 CRAM-MD5 LOGIN PLAIN')dnl
define(`confAUTH_MECHANISMS', `DIGEST-MD5 CRAM-MD5 LOGIN PLAIN')dnl
dnl # </added>
dnl #
dnl # The following allows relaying if the user authenticates, and disallows
dnl # plaintext authentication (PLAIN/LOGIN) on non-TLS links
dnl #
dnl define(`confAUTH_OPTIONS', `A p')dnl
dnl #
dnl # PLAIN is the preferred plaintext authentication method and used by
dnl # Mozilla Mail and Evolution, though Outlook Express and other MUAs do
dnl # use LOGIN. Other mechanisms should be used if the connection is not
dnl # guaranteed secure.
dnl # Please remember that saslauthd needs to be running for AUTH.
dnl #
dnl TRUST_AUTH_MECH(`EXTERNAL DIGEST-MD5 CRAM-MD5 LOGIN PLAIN')dnl
dnl define(`confAUTH_MECHANISMS', `EXTERNAL GSSAPI DIGEST-MD5 CRAM-MD5 LOGIN PLAIN')dnl
dnl #
dnl # Rudimentary information on creating certificates for sendmail TLS:
dnl # cd /usr/share/ssl/certs; make sendmail.pem
dnl # Complete usage:
dnl # make -C /usr/share/ssl/certs usage
dnl #
dnl define(`confCACERT_PATH',`/etc/pki/tls/certs')dnl
dnl define(`confCACERT',`/etc/pki/tls/certs/ca-bundle.crt')dnl
dnl define(`confSERVER_CERT',`/etc/pki/tls/certs/sendmail.pem')dnl
dnl define(`confSERVER_KEY',`/etc/pki/tls/certs/sendmail.pem')dnl
dnl #
dnl # This allows sendmail to use a keyfile that is shared with OpenLDAP's
dnl # slapd, which requires the file to be readble by group ldap
dnl #
dnl define(`confDONT_BLAME_SENDMAIL',`groupreadablekey file')dnl
dnl #
define(`PROCMAIL_MAILER_ARGS', `procmail -m $h $g $u')dnl
define(`PROCMAIL_MAILER_FLAGS', `mSDFMhun')dnl
dnl define(`confTO_QUEUEWARN', `4h')dnl
dnl define(`confTO_QUEUERETURN', `5d')dnl
dnl define(`confQUEUE_LA', `12')dnl
dnl define(`confREFUSE_LA', `18')dnl
define(`confTO_IDENT', `0')dnl
dnl FEATURE(delay_checks)dnl
dnl #
dnl # Here are Sharky's favorite DNSBL definitions.
dnl #
FEATURE(`dnsbl', `list.dsbl.org')dnl
FEATURE(`dnsbl', `bl.spamcop.net')dnl
FEATURE(`dnsbl', `sbl.spamhaus.org')dnl
FEATURE(`dnsbl', `blackholes.mail-abuse.org')dnl
FEATURE(`dnsbl', `relays.mail-abuse.org')dnl
FEATURE(`no_default_msa',`dnl')dnl
FEATURE(`smrsh',`/usr/sbin/smrsh')dnl
FEATURE(`mailertable',`hash -o /etc/mail/mailertable.db')dnl
FEATURE(`virtusertable',`hash -o /etc/mail/virtusertable.db')dnl
FEATURE(redirect)dnl
FEATURE(always_add_domain)dnl
FEATURE(use_cw_file)dnl
FEATURE(use_ct_file)dnl
dnl #
dnl # The following limits the number of processes sendmail can fork to accept
dnl # incoming messages or process its message queues to 12.) sendmail refuses
dnl # to accept connections once it has reached its quota of child processes.
dnl #
dnl define(`confMAX_DAEMON_CHILDREN', 12)dnl
dnl #
dnl # Limits the number of new connections per second. This caps the overhead
dnl # incurred due to forking new sendmail processes. May be useful against
dnl # DoS attacks or barrages of spam. (As mentioned below, a per-IP address
dnl # limit would be useful but is not available as an option at this writing.)
dnl #
dnl define(`confCONNECTION_RATE_THROTTLE', 3)dnl
dnl #
dnl # The -t option will retry delivery if e.g. the user runs over his quota.
dnl #
FEATURE(local_procmail,`',`procmail -t -Y -a $h -d $u')dnl
FEATURE(`access_db',`hash -T<TMPF> -o /etc/mail/access.db')dnl
FEATURE(`blacklist_recipients')dnl
EXPOSED_USER(`root')dnl
dnl #
dnl # For using Cyrus-IMAPd as POP3/IMAP server through LMTP delivery uncomment
dnl # the following 2 definitions and activate below in the MAILER section the
dnl # cyrusv2 mailer.
dnl #
dnl define(`confLOCAL_MAILER', `cyrusv2')dnl
dnl define(`CYRUSV2_MAILER_ARGS', `FILE /var/lib/imap/socket/lmtp')dnl
dnl #
dnl # The following causes sendmail to only listen on the IPv4 loopback address
dnl # 127.0.0.1 and not on any other network devices. Remove the loopback
dnl # address restriction to accept email from the internet or intranet.
dnl #
DAEMON_OPTIONS(`Port=smtp,Name=MTA')dnl
dnl #
dnl # The following causes sendmail to additionally listen to port 587 for
dnl # mail from MUAs that authenticate. Roaming users who can't reach their
dnl # preferred sendmail daemon due to port 25 being blocked or redirected find
dnl # this useful.
dnl #
dnl DAEMON_OPTIONS(`Port=submission, Name=MSA, M=Ea')dnl
dnl #
dnl # The following causes sendmail to additionally listen to port 465, but
dnl # starting immediately in TLS mode upon connecting. Port 25 or 587 followed
dnl # by STARTTLS is preferred, but roaming clients using Outlook Express can't
dnl # do STARTTLS on ports other than 25. Mozilla Mail can ONLY use STARTTLS
dnl # and doesn't support the deprecated smtps; Evolution <1.1.1 uses smtps
dnl # when SSL is enabled-- STARTTLS support is available in version 1.1.1.
dnl #
dnl # For this to work your OpenSSL certificates must be configured.
dnl #
dnl DAEMON_OPTIONS(`Port=smtps, Name=TLSMTA, M=s')dnl
dnl #
dnl # The following causes sendmail to additionally listen on the IPv6 loopback
dnl # device. Remove the loopback address restriction listen to the network.
dnl #
dnl DAEMON_OPTIONS(`port=smtp,Addr=::1, Name=MTA-v6, Family=inet6')dnl
dnl #
dnl # enable both ipv6 and ipv4 in sendmail:
dnl #
dnl DAEMON_OPTIONS(`Name=MTA-v4, Family=inet, Name=MTA-v6, Family=inet6')
dnl #
dnl # We strongly recommend not accepting unresolvable domains if you want to
dnl # protect yourself from spam. However, the laptop and users on computers
dnl # that do not have 24x7 DNS do need this.
dnl #
FEATURE(`accept_unresolvable_domains')dnl
dnl #
dnl FEATURE(`relay_based_on_MX')dnl
dnl #
dnl # Also accept email sent to "localhost.localdomain" as local email.
dnl #
LOCAL_DOMAIN(`localhost.localdomain')dnl
dnl #
dnl # The following example makes mail from this host and any additional
dnl # specified domains appear to be sent from mydomain.com
dnl #
dnl MASQUERADE_AS(`mydomain.com')dnl
dnl #
dnl # masquerade not just the headers, but the envelope as well
dnl #
dnl FEATURE(masquerade_envelope)dnl
dnl #
dnl # masquerade not just @mydomainalias.com, but @*.mydomainalias.com as well
dnl #
FEATURE(masquerade_entire_domain)dnl
dnl #
MASQUERADE_DOMAIN(localhost)
MASQUERADE_DOMAIN(localhost.localdomain)
MASQUERADE_DOMAIN(mydomainalias.com)
MASQUERADE_DOMAIN(mydomain.lan)
FEATURE(`local_procmail')dnl
MAILER(local)
MAILER(smtp)
MAILER(procmail)dnl


thanks