I think you might be reading the wrong FAQ.
has good information about permissions imposed by sendmail.
> email@example.com wrote:
> Major Users,
> I am getting the following errors when trying to send mail thorugh a list file "test".
> The original message was received at Fri, 2 Feb 2001 17:43:02 -0500
> from majordom@localhost
> ----- The following addresses had permanent fatal errors -----
> (expanded from: test-outgoing)
> ----- Transcript of session follows -----
> 550 5.2.4 :include:/home/majordom/lists/test... Cannot open
> /home/majordom/lists/test: Permission denied
> The list files have permission 664
> The directories majordom and lists are set to 750
> majordom is set to group daemon and group ownership on the directories is majordom.daemon
> The aliases are set up like they are in the INstall directions.
> I added a symbolic link in the smrsh folder to wrapper
> The FAQ tells me that when I get this error my permissions are to strict yet the Install tells me to set the permissions to what I have above?
> I am using sendmail on redhat linux 7.2. I must be missing something simple?
> Mark Sprenger