I continue  my search and also found this thread on another site from some 
time back:

http://answers.microsoft.com/en-us/outlook_com/forum/oemail-oapps/imap-smtp-error-setting-up-in-android/a5dc7b79-d1f9-4887-8a1d-a75cbc79c878?auth=1



On Saturday, August 29, 2015 at 10:29:28 AM UTC-5, [email protected] wrote:

> I'm trying to set up my Hotmail accounts with the following on an Android 
> Galaxy Note Edge:
>
> Incoming (POP3) Server
>
>    - 
>    
>    Server address: pop-mail.outlook.com
>    - 
>    
>    Port: 995
>    - 
>    
>    Encrypted Connection: SSL 
>    
> - 
>
> Outgoing (SMTP) Server
>
>    - 
>    
>    Server address: smtp-mail.outlook.com
>    - 
>    
>    Port: 25 (or 587 if 25 is blocked)
>    - 
>    
>    Authentication: Yes 
>    - 
>    
>    Encrypted Connection: TLS 
>    
> - 
>
> User name: my email address
> - 
>
> Password: my email password
>
> I know for sure that the email/password combo is correct, but I am getting 
> the error that Setup couldn't finish as authentication failed on POP and 
> handshake failed on SMTP.
>
> Anyone else seen this and have any ideas?
>

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