Not sure if this helps but been a mobile me user for a year now and this is my outlook 2007 settings:
Also worth noting I have seen in small print that iCloud will only work with Outlook 2007 & 2010
Account type: imap
Incoming mail server: mail.me.com
Outgoing mail server: smtp.me.com
- (I note that Apple's KB of this states: smtp.mail.me.com i.e. mine does not have "mail" in it).
User name: (_ _ _ _ _)@me.com (don't put in @me.com though)
Tick require logon using SPA
on advanced tab:
outgoing server tab
my outgoing server (SMTP) requires authentication: tick this
use same settings as my incoming mail server: click this
Advanced tab
Incoming server (IMAP): 993
Use following type of encrypted connection: SSL
Outgoing server (SMTP): 587
Use following type of encrypted connection: TLS
So far my account is still working but have not upgraded to iOS5 or iCloud yet as waiting for update to another program that I use to bypass iTunes for music importing.
You may just need to wait.
I transferred my MobileMe account to iCloud on iOS 5 launch day. I encountered the same issues that you seem to be having in that when I tried to use the mail app on iCloud.com it gave me same error message as you received. When I tried to turn mail and notes on in the iCloud system preferences, it just hanged on 'starting'. All other features were working correctly.
I just trumpet it up to high demand on Apple's servers and decided to wait. I just tried now and my email is working from both iCloud.com and mail.app.
Best Answer
Officially you cannot use third party clients for connecting to AIM with iCloud account. It seems that the protocol is the same, but authentication is different.
This quote is from this board.
Try using a nightly build of Adium, if it's fixed — it's there.