So I?ve created a config-file for sendmail: /opt/csw/lib/sasl2/Sendmail.conf, which contains
pwcheck_method: shadow (sendmail was running as root, meaning that it should be able to read /etc/shadow)
I?ve tried changing to ?pwcheck_method: saslauthd? and starting /opt/csw/sbin/saslauthd, with the params ?a shadow (or ?a pam) ?V to see if that would worked better, but no? (I?ve also checked that saslauthd is running as root, to be able to read the /etc/shadow)
I think "pwcheck_method: saslauthd" is what you want. But are you sure that /opt/csw/lib/sasl2 is the correct location for Sendmail.conf? (I don't know about Solaris, but on FreeBSD it's located in /usr/local/lib/sasl2.)