Hi !
It was not a openssl problem.
The issue was that the default ca-bundle.crt (/etc/pki/tls/certs) used 
referenced in sendmail.mc
was to large for windows xp and vista clients running windows live mail, 
outlook and outlook express.
I didn't have this problem with windows vista.
I have made a smaller copy (270KB) of that ca-bundle.crt to be used with 
sendmail.mc, recompiled it
and restarted Sendmail and it works now.
thanks
Hope this might help someone.
Regards
David

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