Can't access iCloud email after update to 10.7.4

After updating to System 10.7.4, I can't access my iCloud email account on any of my devices (computer and iPhone 4S). The servers are not recognizing my email password, which is the same as my Apple ID password.  I can log in to iCloud using Safari and access all of my other information (contacts, etc.), but not email.
I tried going to Keychain Access and found that my old MobileMe password was correct (now my iCloud and Apple ID password), but the "application password" associated with my email account (which is now my iCloud email account) had been switched to a long string of nonsense.  I tried changing that string to my actual apple ID password, but the system changed it back to the nonsense string. What's going on here???

I've seen others having problems with a server being down, but I've had no problems yet. And all email providers have problems from time to time. I expect Apple is having minor problems with the transition from MMe to iCloud and I expect it to become stable, even though I've seen few problems.
From my experience, it's been more stable than gmail or att.net. Do what makes you comfortable and no reason not to have both in case one fails.
Unless you're a very unlucky person on a bad server, it may just be a setup issue. Try signing out of iCloud, delete iCloud accounts left in Mail. Delete any password associated with iCloud or MMe or .mac in Keychain for applications, not the website password. Verify your Keychain is OK after with Keychain First Aid.
Then sign back into iCloud and let the server set up the Mail account. The only thing you have to do is check the box to use Mail and iCloud does the account setup. If it doesn't work, then it's a server issue.
As of right now, iCloud system status reports no trouble in the US.
http://www.apple.com/support/icloud/systemstatus/

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