Normally if you hand-edit a linuxconf-generated sendmail.cf file then the next time linuxconf runs it insists on regenerating the file (this might be considerd a bug by itself, but is not the purpose of this report). When it does so it brings up a dialog to tell you that it is doing so, and waits for the "OK" to proceed. However, if you hand-edit a linuxconf-generated sendmail.cf and then reboot, then when linuxconf runs from /etc/rc.d/init.d/linuxconf it will hang. I am guessing that it is waiting for the "OK" to replace sendmail.cf but, of course, is not getting it.
Reported fixed in linuxconf-1.16r1.3, released as update RHEA-1999:026