Glad your original problem is solved.
"The last problem I have to resolve is that I am getting "relaying denied" when trying to send from the network to outside the network."
You can fix this by editing your /etc/mail/access file. Add a line like:
192.168 RELAY
Tweak it to fit your IP ranges. Then just rebuild the access db and restart sendmail:
cd /etc/mail && make && /etc/rc.d/init.d/sendmail restart