You need to set sendmail up to masquerade the envelope properly and you need to relay through your ISP's SMTP host. See section 3.1 of the Red Hat Sendmail HOWTO for a thorough explanation and detailed instructions. Here are the critical components for your macro configuration file:
define(`SMART_HOST',`mail.yourisp.net')dnl MASQUERADE_AS(yourisp.net)dnl FEATURE(`allmasquerade')dnl FEATURE(`masquerade_envelope')dnl |