My new ME icloud email Cannot read email on outloook or thunderbird

Hey guys, sorry for the horrible title.
I installed iOS 5 on my ipad 2 and my 2 iphones today.
Everything is great, except for 1 single issue.
I created my new .me cloud ID and email address.
And I tested my email through all my devices as well as the icloud.com domain and it works flawlessly.
But, as soon as I try and install IMAP settings in my Outlook 2007 or Mozilla Thunderbird client it fails during the connection process and says "username or password incorrect.
Here are my IMAP settings:
imap.mail.me.com   port 993
smtp.mail.me.com   port 587
SSL is enabled as per Apple.com recommendations.
Username =   [email protected]
Password = same password as apple id
Those were the recommended settings from apple. But I just CAN NOT seem to login through any email clients on my PC. It is almost like no password exists in the icloud database for external IMAP connections.
I really need this ability for work so I am hoping someone can help me fast. I plan on forwarding all my email to my new .me email address and using the cloud for everything from now on.
Regards,
Dom

Hey everyone. I did poking around on the IMAP server sides of things and have more information on why things aren't working right. It's a bug on apple's IMAP servers with the AUTHENTICATE command.
More info is on this thread --> https://discussions.apple.com/message/16360598#16360598
It's a bug and its so stupid. AUTHENTICATE PLAIN is required to work in ALL IMAP servers as per RFC 3501 and, of course, it doesn't work here. Arrrghhhhhhhhh

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