Sendmail < 8.12.8 has a critical flaw that affects header parsing. This was discovered by ISS and apparently has been known since Decemeber 2002 but was just now publicly disclosed because "critical infrastructure" organizations such as power companies, etc, were given the opportunity to address it before it was made public. I have HUGE issues with that approach, but thats another discussion, for now if you use sendmail (and somewhere along the line you DO) then patch it yourself and make someone aware of the issue who can.
See the linked 8.12.8 release notes and CERT for more. http://www.sendmail.org/8.12.8.html
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