Displaying Bug BID158Application: freenats
In sendmail-based environments (such as the VM) where sendmail is unable to determine a correct hostname to present it presents as localhost.localdomain (or sometimes a local-only DNS name) to an external mailserver. If the external mailserver has anti-spam rules on requiring either the HELO ID to exist, match the sender or match the from domain in the email then this causes mail to be rejected.
This is not a bug in freenats but an environmental/SMTP problem where your mailserver has ultra-strict rules and the system is not able to determine a proper resolvable hostname from DHCP/static config. See the troubleshooting section of the documentation for how to resolve this issue.
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