sendmail hostname

When I lok at the headers for an email sent from my server, it cals my server "server.server.com", and I found out that's because that's what's in my hosts file: 127.0.0.1 server.server.com server localhost.localdomain localhost Aparently it takes whatever's the first thing in the hosts file, so if I change my hosts file to: 127.0.0.1 mydomain .com server.server.com server localhost.localdomain localhost then sendmail wil use What is the sendmail seting to pick a diferent hostname rather than just the first on the list?
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