Question : how can i setup sendmail 8.0 for outlook express?.

i have installed and configured sendmail. I can send and receive mails within the same machine where i have configure it through telnet command.
what setting i have make, so that i can send and receive mails from outlook express.

can anybody help me out?

Answer : how can i setup sendmail 8.0 for outlook express?.

http://www.linuxmail.info/why-use-linux-mail-server/

Look at Postfix HowTos to give you some more understanding.
Then Install WEBMIN (google this)

when your done with those two tools, you'll have a robust email server that you can use with Outlook Express, and any other mail client that uses POP/SMTP/IMAP

Hope this helps.