Sendmail not working with setoolkit

I have installed sendmail and configured setoolkit to use it. I have tested that sendmail works using the sendmail command via the terminal and via telnet. Both test were successful and email was delivered to my remote gmail account. When I try to send an email with set it does not work. set says seems to work fine but I get the following error in my mail.log file.

Code:

---

Apr 30 15:32:58 smtp sm-mta[9465]: s3UJWwxa009465: localhost [127.0.0.1] did not issue MAIL/EXPN/VRFY/ETRN during connection to MTA-v4

---

Again, sending mail using telnet and the sendmail command worked fine.

Any help is much appreciated!

--Kevin