Sendmail problems

I'm having these packages for mailing:

ii  procmail                               3.22-24                              amd64        Versatile e-mail processor
ii  sendmail                               8.14.4-8                             all          powerful, efficient, and scalable Mail Transport Agent (metapackage)
ii  sendmail-base                          8.14.4-8                             all          powerful, efficient, and scalable Mail Transport Agent (arch independent files)
ii  sendmail-bin                           8.14.4-8                             amd64        powerful, efficient, and scalable Mail Transport Agent
ii  sendmail-cf                            8.14.4-8                             all          powerful, efficient, and scalable Mail Transport Agent (config macros)

And I'm trying to set up sendmail for PHP. (mail() function)

I want to run an SMTP server locally, and I want to use that for sending messages.

My domain name is forcemagic.xyz.

My /etc/hosts file looks like this:

127.0.0.1       forcemagic.localdomain localhost forcemagic.xyz

# The following lines are desirable for IPv6 capable hosts
::1     localhost ip6-localhost ip6-loopback
ff02::1 ip6-allnodes
ff02::2 ip6-allrouters

My hostname is forcemagic.

So I need help in:

• Setting up an SMTP server
• Setting up sendmail correctly