You may have a line that looks like: O DaemonPortOptions=Name=MTA, Addr=127.0.0.1
Add another line that looks like: O DaemonPortOptions=Name=MTA, Addr=192.168.1.1
2) The advise by netmask is simply wrong because it will prevent Sendmail from proper working. Local mailing is broken then. Edit the /etc/mail/sendmail.mc file and comment the DAEMON_OPTIONS line in there as it is documented in the file itself.
You're wrong. You can have multiple DaemonPortOptions lines.. Just as I said.