At 6:17 PM -0700 10/13/2009, tonycd wrote:
>  2  adsl-99-144-239-254.dsl.emhril.sbcglobal.net (99.144.239.254)
>17.870 ms  16.665 ms  25.795 ms
>[etc]

Ok....

It's not Thunderbird - if the prefs etc were foo, it would be failing 
all the time.

It's not your DNS - that translation (the dig) was good.

It's not your path to Yahoo's servers - the traceroute is ok.

That brings us back to the original error message:
>The message could not be sent because connecting to SMTP server
>smtp.att.yahoo failed. The server may be unavailable or is refusing
>SMTP connections.

I just hit that SMTP server cluster directly, using telnet.  Most of 
my attempt succeeded in connecting and getting the server's first 
response.  But quite a few failed!

So the problem is Yahoo's server is refusing connections now and 
then.  This is the type of thing that Yahoo should have noticed and 
fixed fairly quickly. but .... sigh.  At this point the best thing to 
do would be for you to send a message to your ISP.  Give them that 
error message.  Tell them that DNS lookups and a traceroute seems 
fine - that the problem is that the server itself is not always 
responding.  Because this is a contracted/outsourced service, it may 
take a while to fix...

IN the mean time.... You might want to switch to a more reliable 
provider.  My fav these days is Gmail...

- Dan.
-- 
- Psychoceramic Emeritus; South Jersey, USA, Earth.

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