upgrade to sendmail 812 and getting broken messages

[Ken Hawkins]

i upgraded to sendmail 812 and it looks like i might have broken 
something:

Mar  9 13:10:47 web1 sm-msp-queue[32428]: j29JA1bS032328: to=Ken 
Hawkins <ken at rosewoodblues.com>, ctladdr=root (0/0), delay=00:00:46, 
xdelay=00:00:00, mailer=relay, pri=210302, relay=[127.0.0.1] 
[127.0.0.1], dsn=4.0.0, stat=Deferred: Connection refused by 
[127.0.0.1]

not sure why this says  connection refused by 127.0.0.1 as I am 
actually relaying via the SMART_HOST directive. I did notice that the 
ctladdr does not have the entire address in it, could this be my 
problem? not sure why it is saying that my relay is 127.0.0.1

thanks in advance,
ken;