Can no longer send emails from Mail on iMac but CAN on MBP

Initially, when Mobile Me ended, my email was changed to work with iCloud and it worked fine for about seven months or so.  Then, it started giving me an error message (on my iMac, my Macbook Pro, and my iPhone) that said it rejected my password. After a long phone call with Apple, they said that the iCloud server was having problems with certain accounts.  They seemed to have fixed it and the mail started working again. 
Then it stopped sending email BUT ONLY on my iMac (message says that stmp rejects my password).  I have the exact same settings (and password) on my Macbook Pro and the iCloud/Mac/Me mail is received and sent without trouble.  I have Snow Leopard on both computers and the same version of Mail on both computers. My Thunderbird email client receives and sends my iCloud/Mac/Me email on my iMac without a problem.  Apple Mail receives and sends my other email addresses (gmail, hover) without a problem.  Gmail is set to POP and Hover is set to IMAP.
What I have tried:
1) I have deleted the iCloud mail account and re-created it using instructions from Apple Support online as well as Mac users on the forums.  (I am not an IT expert, but I can follow instructions.)
2) I have removed all saved iCloud/Mobile Me passwords from my keychain (both incoming and outgoing) in case there was an old one stored there.
3) I have created a new IMAP account.  I have created a new Mobile Me IMAP account. I am not given the option in Snow Leopard of creating a new iCloud account -- but as I said the iCloud account (called Mobile Me IMAP) is WORKING on my Macbook Pro.  
If I were having the problem with the Macbook Pro rather than the iMac, I'd just go to the Genius Bar and let them handle it.  But, if I can do it without packing up and carrying my desktop, that would be preferable. 
Any suggestions?

Hi Lanny,
Thank you for this.  I followed it "to the letter".  In fact, I tried it twice to make sure I didn't miss any steps. Both times, everything went as described until STMP.  When I got to the STMP page and hit "create", it once again told me that the STMP server name and/or password were "incorrect".  My iCloud mail arrives fine, but nothing can go out because the outgoing mail does not recognize my password (or at least that seems to be what is happening.) I tried to give up and set Thunderbird up as my default mail client, but iPhoto doesn't recognize it and when I want to email a photo, it opens Apple Mail. I just do not understand why it works on my MBP and not on my iMac. Nothing was changed on either computer.  It simply stopped sending outgoing mail on the iMac and continues to send out on the MBP. 
It's a mystery.
LR

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