I found the problem. The key was this line. There is a new shell that's used by Sendmail for executing programs. It needs to be configured to know what programs its alowed to run. Once I did that it started working.
Gregory Gulik wrote:
Jun 2 12:03:32 server2 smrsh: uid 8: attempt to use "flist mylist" (stat failed)
-- Greg Gulik http://www.gulik.org/greg/ greg @ gulik.org
