sendmail virtusertable entries won't work except for root

[Chris Bennett]

I can't get any users except root to work in virtusertable. forwarding 
to root works fine.
forwarding to a different user fails. I get user unknown error trying to 
forward in the aliases file also fails except for root. Incoming mail 
works fine as long as it goes to root only.
using openbsd 4.0 Is there something wrong with the local users or 
permissions on files?

With virtusertable like this:
@ledgersmb.info         %1 at localhost
#webmaster at ledgersmb.info       LSMBF005

And aliases as:
webmaster:      root,LSMBF005

Gives maillog:
Apr  7 11:17:01 b03s15le sm-mta[30411]: restarting /usr/sbin/sendmail 
due to signal
Apr  7 11:17:01 b03s15le sm-mta[31168]: starting daemon (8.13.8): 
SMTP+queueing at 00:30:00
Apr  7 11:17:26 b03s15le sm-mta[2485]: m37GHQvc002485: 
from=<root at b03s15le.corenetworks.net>, size=759, class=0, nrcpts=1, 
msgid=<200804071617.m37GHQvc002485 at b03s15le.corenetworks.net>, 
proto=SMTP, daemon=MTA, relay=LSMBF005 at localhost.corenetworks.net 
[127.0.0.1]
Apr  7 11:17:26 b03s15le sm-mta[25690]: m37GHQvc002485: to=LSMBF005, 
ctladdr=<webmaster at ledgersmb.info> (1/0), delay=00:00:00, mailer=local, 
pri=120759, dsn=5.1.1, stat=User unknown
Apr  7 11:17:26 b03s15le sm-mta[25690]: m37GHQvc002485: to=root, 
ctladdr=<root at b03s15le.corenetworks.net> (0/0), delay=00:00:00, 
xdelay=00:00:00, mailer=local, pri=61141, dsn=2.0.0, stat=Sent
Apr  7 11:17:26 b03s15le sm-mta[25690]: m37GHQvc002485: m37GHQvc025690: 
DSN: User unknown
Apr  7 11:17:26 b03s15le sm-mta[25690]: m37GHQvc025690: 
to=<root at b03s15le.corenetworks.net>, delay=00:00:00, xdelay=00:00:00, 
mailer=local, pri=30000, dsn=2.0.0, stat=Sent

Message gets delivered to root but not to LSMBF005

Thanks