sendmail MX complaint

[Gary Aitken]

Hello all,

What does the following mean, and where did I screw up?
It seems to me like the complaint is what I want -- MX says nightmare, 
which is nightmare.dreamchaser.org, which is 12.32.36.65.  
Obviously something here I don't understand (nothing new there...)

Jun 19 14:28:33 nightmare sendmail[3020]: h5JKSWK03018: SYSERR(root): MX list for dreamchaser.org. points back to nightmare.dreamchaser.org
Jun 19 14:28:42 nightmare sendmail[3020]: h5JKSXK03020: Losing ./qfh5JKSXK03020: savemail panic
Jun 19 14:28:42 nightmare sendmail[3020]: h5JKSXK03020: SYSERR(root): savemail: cannot save rejected email anywhere

This suddenly showed up as a result of removing dreamchaser.org and nightmare.dreamchaser.org from my /etc/mail/sendmail.cw file, but leaving in the following two entires:
  12.32.36
  12.32.36.65

My zone file looks like this:

; Not needed; origin comes from the zone statement in named.conf
$ORIGIN DREAMCHASER.ORG.
$TTL	3600
@	IN	SOA	dreamchaser.org. root.dreamchaser.org.  (
				2001031501	
				3600
				900	
				604800	
				3600 )	
	IN	NS	nightmare.dreamchaser.org. 
	IN	NS	ns.village.org. 
	IN	MX	5 nightmare     
dreamchaser.org. IN A 12.32.36.65     
nightmare        IN  A 12.32.36.65
www     IN      CNAME   nightmare

And reverse looks like:

; Not needed; origin comes from the zone statement in named.conf
$ORIGIN 36.32.12.IN-ADDR.ARPA.
$TTL	3600
@	IN	SOA	nightmare.dreamchaser.org. root.nightmare.dreamchaser.org.  (
				2001032201
				3600
				900
				604800
				3600 )
 IN	NS	nightmare.dreamchaser.org.
	IN	NS	ns.village.org.
65      IN      PTR     nightmare.dreamchaser.org.