Fedora Users — sendmail problem

Hello. I'm using Sendmail installed with Fedora 4. I have masquerade set and have done a make and restart and it still thinks it's sending as localhost.localdomain as in the output below. I'm using define(`confDOMAIN_NAME', `ini-wf.indystar.com')dnl in sendmail.mc to set macro $j in sendmail.cf just so we get fewer bounces, but this isn't an good solution. I would like to get masquerading working properly and would appreciate any suggestions.

Sendmail test:
sendmail -bt -d0
Version 8.13.6
Compiled with: DNSMAP HESIOD HES_GETMAILHOST LDAPMAP LOG MAP_REGEX
MATCHGECOS MILTER MIME7TO8 MIME8TO7 NAMED_BIND NETINET NETINET6
NETUNIX NEWDB NIS PIPELINING SASLv2 SCANF SOCKETMAP STARTTLS
TCPWRAPPERS USERDB USE_LDAP_INIT

============ SYSTEM IDENTITY (after readcf) ============
(short domain name) $w = localhost
(canonical domain name) $j = ini-wf.indystar.com
(subdomain name) $m = localdomain
(node name) $k = ini-wf

sendmail.mc has these entries:
MASQUERADE_AS(`indystar.com')dnl
FEATURE(masquerade_envelope)dnl
FEATURE(masquerade_entire_domain)dnl
MASQUERADE_DOMAIN('localhost')dnl
MASQUERADE_DOMAIN('localhost.localdomain')dnl
MASQUERADE_DOMAIN('starnews.com')dnl
MASQUERADE_DOMAIN('ini-wf')dnl

The top line of /etc/hosts is 127.0.0.1 ini-wf localhost.localdomain localhost