but *IS* not being used.

To enable sendmail to use STARTTLS, you need to:
1) Add this line to /etc/mail/sendmail.mc and optionally
   to /etc/mail/submit.mc:
  include(`/etc/mail/tls/starttls.m4')dnl
2) Run sendmailconfig
3) Restart sendmail

Checking {sendmail,submit}.mc and related databases...
Reading configuration from /etc/mail/sendmail.conf.
Validating configuration.
Creating /etc/mail/databases...
Reading configuration from /etc/mail/sendmail.conf.
Validating configuration.
Creating /etc/mail/databases...
Reading configuration from /etc/mail/sendmail.conf.
Validating configuration.
Creating /etc/mail/Makefile...
Reading configuration from /etc/mail/sendmail.conf.
Validating configuration.
Writing configuration to /etc/mail/sendmail.conf.
Writing /etc/cron.d/sendmail.
Disabling HOST statistics file(/var/lib/sendmail/host_status).
Creating /etc/mail/sendmail.cf...
*** ERROR: FEATURE() should be before MAILER()
*** MAILER(`local') must appear after FEATURE(`always_add_domain')*** ERROR: FEATURE() should be before MAILER()
*** MAILER(`local') must appear after FEATURE(`allmasquerade')*** ERROR: FEATURE() should be before MAILER()

Creating /etc/mail/submit.cf...
Informational: confCR_FILE file empty: /etc/mail/relay-domains
Informational: confCT_FILE file empty: /etc/mail/trusted-users
Updating /etc/mail/access...
Updating /etc/mail/aliases...
/etc/mail/aliases: 14 aliases, longest 10 bytes, 156 bytes total

Warning: These messages were issued while creating sendmail.cf
        make sure they are benign before starting sendmail!

Errors in generating sendmail.cf
*** ERROR: FEATURE() should be before MAILER()
*** MAILER(`local') must appear after FEATURE(`always_add_domain')*** ERROR: FEATURE() should be before MAILER()
*** MAILER(`local') must appear after FEATURE(`allmasquerade')*** ERROR: FEATURE() should be before MAILER()

Reload the running sendmail now with the new configuration? [Y]
Reloading sendmail ...
jescis:/etc/mail# screendump >> sendmailerr