The manpage states "Lines starting with ‘#’ and empty lines are interpreted as comments." So comments should not start in the middle of a word / line.
attached is a minimal patch. (the freebsd patch also works and cleans a lot, but IMHO the (char)NULL should be patched separately and their pointer arithmetic is weird and unneeded)
diff --git a/ssmtp.c b/ssmtp.c
index af4d1e5..3ab3b4d 100644
--- a/ssmtp.c
+++ b/ssmtp.c
@@ -874,14 +874,12 @@ bool_t read_config()
while(fgets(buf, sizeof(buf), fp)) {
char *begin=buf;
char *rightside;
- /* Make comments invisible */
- if((p = strchr(buf, '#'))) {
- *p = (char)NULL;
- }
/* Ignore malformed lines and comments */
+ if(*strip_pre_ws(buf) == '#') continue;
if(strchr(buf, '=') == (char *)NULL) continue;
+
/* Parse out keywords */
p=firsttok(&begin, "= \t\n");
if(p){
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