Sendmail setup with Nagios

[Izz Abdullah]

I've read the documentation, and have two options:
1. relay alerts from the Nagios server to our local Exchange server (which is too much company politics)
2. setup sendmail correctly to send alerts

So, I know now how to do number one (I think), but number 2, cannot.  I am an experienced linux user, but have always been anti-sendmail because of the different security risks over the past.  I am guessing that not only does sendmail have to be installed, but the Nagios server must also act as a mail server.  Can someone please guide me in arranging this setup correctly as I am stuck and need to get alert notifications setup correctly soon.

Nagios 3.0.1
Redhat Linux Enterprise Server AS v4

Thanks in advance,
Izz

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