Sendmail && Google Apps Email - Not Working Together

[Schiz0]

Hey list,

I have a FreeBSD 7.0-RELEASE box at "domain.tld". I decided I want to
use Google Apps to handle my email accounts, so I set my MX records at
"domain.tld" to point to google's servers. I don't want to accept any
incoming mail on my FreeBSD box (It's firewalled off anyway), but I do
want to be able to send outgoing mail. I have sendmail_enable="NO" in
my /etc/rc.conf.

Now, the problem is that I cannot send OUTGOING mail from the server
itself to the @domain.tld email accounts. It isn't a firewall issue
because the server can send mail out to any other address just fine.

Below is the output of /var/log/maillog. I'm trying to send an email
from the "irc" account on the server, to "staff at domain.tld". I think
maybe sendmail is getting confused because the hostname of the FreeBSD
box is also "domain.tld", the same host I'm trying to send outgoing
mail to.

Can anyone shed any light on the issue? Thanks!

sendmail[980]: m5OMSGT1000980: from=irc, size=125, class=0, nrcpts=1,
msgid=<200806242228.m5OMSGT1000980 at domain.tld>, relay=irc at localhost
<snip>
sm-mta[981]: m5OMSLet000981: <-- MAIL From:<irc at domain.tld> SIZE=125
sm-mta[981]: m5OMSLet000981: --- 250 2.1.0 <irc at domain.tld>... Sender ok
sm-mta[981]: m5OMSLet000981: <-- RCPT To:<staff at domain.tld>
sm-mta[981]: m5OMSLet000981: --- 550 5.1.1 <staff at domain.tld>... User unknown
sm-mta[981]: m5OMSLet000981: <staff at domain.tld>... User unknown
sm-mta[981]: m5OMSLet000981: <-- DATA
sm-mta[981]: m5OMSLet000981: --- 503 5.0.0 Need RCPT (recipient)
sendmail[980]: m5OMSGT1000980: to=staff at domain.tld, ctladdr=irc
(1004/1004), delay=00:00:05, xdelay=00:00:05, mailer=relay, pri=30125,
relay=[127.0.0.1] [127.0.0.1], dsn=5.1.1, stat=User unknown
sm-mta[981]: m5OMSLet000981: <-- RSET
sm-mta[981]: m5OMSLet000981: --- 250 2.0.0 Reset state
sm-mta[981]: m5OMSLet000981: from=<irc at domain.tld>, size=125, class=0,
nrcpts=0, proto=ESMTP, daemon=Daemon0, relay=localhost [127.0.0.1]
sm-mta[981]: m5OMSLeu000981: <-- QUIT
sm-mta[981]: m5OMSLeu000981: --- 221 2.0.0 tastetherainbow.ws closing connection