Sendmail SMTP Problem

[Frederic Herman]

After upgrading from RedHat 9 to Fedora core, I have a problem with 
smtp, due to sendmail now using sasl for authentication.  I have 
saslauthd running as:

/usr/sbin/saslauthd -m /var/run/saslauthd -a shadow

which should use the /etc/shadow file for authentication.  However, what 
actually happens is that each user must have their username & password 
in the /etc/sasldb2 file.  As far as I can tell, the shadow password 
file isn't being used for authentication.  The only configuration file 
that I'm aware of the sasl should be using is 
/usr/lib/sasl2/Sendmail.conf which contains:

pwcheck_method: sasluathd

I'd actually like to not use passwords for this since I already restrict 
smtp to a very limited number of ip's, because everytime a user start's 
their browser, they have to reenter their password.

Any help would be appreciated.

Fred