For an FYI - yeah, it was just postfix (the sendmail was there as a script to keep postfix working). The weird thing that really threw me was that SuSE has its own configuration files. You can't get 'postfix' advice, unless its 'SuSE postfix' advice. After browsing through groups and stuff, I figured out where postfix config hides and where the localdomain list was, and viola, everything is peachy.
Afterward, I resetup my firewall, and now everything is back secure. Now, I'll never touch that setup again (just apache to work with tomcat and JBoss).
Thanks for all the advice and input