Path: utzoo!utgpu!jarvis.csri.toronto.edu!mailrus!csd4.csd.uwm.edu!uakari.primate.wisc.edu!aplcen!decuac!avolio
From: avolio@decuac.dec.com (Frederick M. Avolio)
Newsgroups: comp.unix.ultrix
Subject: I need urgent help for mail11d(v3)
Message-ID: <2730@decuac.DEC.COM>
Date: 9 Sep 89 03:45:59 GMT
References: <541@arco.uucp>
Sender: news@decuac.DEC.COM
Organization: Digital Equipment Corp., SWS, Landover, MD
Lines: 13

This is -- I am pretty sure -- being done by the sendmail.cf file.  Look
for rules in /etc/sendmail.cf such as

R$-%$+		$:$1<@$2>

or something.  Sendmail is seeing  

	singletoken%singleothertoken

because anything in quotes is taken as one thing.  Ususally sendmail says
to replace a right-most % with a @.  This is what is happening.

Fred