Authentication failed because Outlook doesn't support any of the available authentication methods.

When attempting to check and send email from my Mac via iCloud, I keep getting the error "Authentication failed because Outlook doesn't support any of the available authentication methods." I have change just about everything I can see available, but continue to get this message.
I am able to send email via iCloud using my .Me and .Mac adresses, and that tells me that it is not able to store "sent emails" on iCluud and will store them loaclly on my computer. I can handle this, but whem going to iCloud Web page haave nothing withing the "sent" mailbox.
Using OS 10.7.2, and Outlook 2011 version 14.1.3
Thanks in advance......

I got the following from the microsoft Web site. Also, the SMPT port must be overwriten. Use port 587
This article contains information about the compatibility of Microsoft Outlook for Mac 2011 and Apple iCloud. Outlook for Mac 2011 does not support Apple iCloud calendar (CalDAV) and contact (CardDAV) synchronization.  Outlook for Mac 2011 does support iCloud Mail. For steps on how to configure your iCloud email account in Outlook for Mac 2011, go to the "More Information" section of this article. 
To configure your Apple iCloud email account in Microsoft Outlook for Mac 2011, follow these steps:
Start Outlook 2011.
On the Tools menu, click Accounts.
Click the plus sign in the lower-left corner, and then select E-mail.
Enter your E-mail Address and Password, and then click Add Account.
Note: The new account will appear in the left navigation pane of the Accounts dialog box.
Enter one of the following in the Incoming server box:
mail.me.com (for me.com mail addresses)
mail.mac.com (for mac.com mail addresses)
Click to select Use SSL to connect (recommended) under the Incoming server box.
Enter one of the following in the Outgoing server box:
smtp.me.com (for me.com mail addresses)
smtp.mac.com (for mac.com mail addresses)
Click to select Use SSL to connect (recommended) under the Outgoing server box.
After you have entered the incoming and outgoing server information, Outlook 2011 will start to receive your email messages. 
Note: You can click Advanced to enter additional settings, such as leaving a copy of each message on the server. 

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