Sendmail authentication still broken...

Does anyone know how to get Sendmail to simply authenticate against local users on the server? I've got my sendmail.mc file as tweaked as I can and I've recompiled and reloaded Sendmail about a million times but I can't get it to acknowledge the authentication when I issue the 'ehlo localhost' command. The relevant lines of my sendmail.mc file:

define(`confAUTH_OPTIONS', `A')dnl
TRUST_AUTH_MECH(`EXTERNAL DIGEST-MD5 CRAM-MD5 LOGIN PLAIN')dnl
define(`confAUTH_MECHANISMS', `EXTERNAL DIGEST-MD5 CRAM-MD5 LOGIN PLAIN')dnl
DAEMON_OPTIONS(`Port=smtp, Name=MTA')dnl

but this is the list I get after the 'ehlo' command:

250-jaxs.telepkids.com Hello root@localhost [127.0.0.1], pleased to meet you
250-ENHANCEDSTATUSCODES
250-PIPELINING
250-EXPN
250-VERB
250-8BITMIME
250-SIZE
250-DSN
250-ETRN
250-STARTTLS
250-DELIVERBY
250 HELP

I can get an "AUTH" listing there and it's driving me crazy.

Does anyone have any ideas about this one?

Thanks,

Jon