>Ok .. here's the deal .. we have closed down our mail server to all but our
>hosted domains

aka "open relay"

>  .. however when we run abuse.net's test on the mail server it
>always gets through with the fourth try .. ie it forges the from header ..

ohmygod!!

>hell any SPAMMER can do that .. what am I missing?

Here, somebody else hit this guy in the head with a hammer.

>.. if this can not be fixed we will be banned forever from the net 
>with our current mail server ..

sh@t happens.  Take up golf!

>I can relay to one of our sendmail boxes but this would not be the ideal fix
>.. HELP! .. advice ? .. someone else already been down this path?

Nope, you are a pioneer, and welcome to the Imail list.

"relay for addresses" is the ONLY secure "option".  All other 
relaying to be allowed only after SMTP AUTHentication.  Also, block 
ip spoofing of your inside addresses at your border router.

Len



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