I would make sure that you have steps 6 and 7 set up correctly. Smtp servers really dont care if your computer is atteched to a domain or not. But if an outgoing smtp server requires authentication (which yahoo does) you have to make sure that check box is checked. Let me know how this works for you.
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Yahoo! Mail users can read their email in Outlook by subscribing to the Yahoo! Mail Plus service. This service allows you to use Outlook or another POP3 client to access and manage your Yahoo! Mail messages.
To configure your POP settings for Microsoft Outlook 2002 (sometimes referred to as Outlook XP) and 2003, follow these steps:
1. From the Tools menu, select "Email Accounts." You may have to click the arrows.
2. Select the radio button next to "Add a new email account" and click the "Next" button.
3. Select the radio button next to "POP3" and click the "Next" button.
4. Enter the following information:
User Information
* Your Name: Enter your name as you would like it to appear in the "From" field of your outgoing messages.
* Email Address: Enter your full Yahoo! Mail address (for example, "user@yahoo.com").
Server Information
* Incoming mail server (POP3):
pop.mail.yahoo.com
* Outgoing mail server (SMTP):
smtp.mail.yahoo.com
Login Information
* User Name: Enter your Yahoo! ID (your email address without the "@yahoo.com").
* Password: Enter your Yahoo! password.
5. Do not check the box next to "Log on using Secure Password Authentication (SPA)."
6. Click the "More Settings" box and select the "Outgoing Server" tab.
7. Check the box next to "My outgoing server (SMTP) requires authentication."
8. If you would like to keep a copy of your email messages on the Yahoo! Mail server, select the "Advanced" tab. Check the box next to "Leave a copy of messages on the server."
9. Click the "OK" button.
10. Click the "Next" button on the Email Account Wizard, then click "Finished."