Outlook 2011 for MAC keeps asking for password

Outlook for MAC 2011 keeps asking me for google password.  It wont accept what i put in.  The password is correct along with name because it works when I enter it in google.  I recently updated password.
Need help in fixing or finding problem.
Error message:  Mail could not be received at this time.
The server for account Gmail returned the error (authentification failed) invalid credentials.
Failure:  You username/password or security settings may be incorrect.
But they are correct as I can logon to Google without problem.
Could it have anything to due with two stage security in google?
Nick

Hi Steve,
Thanks for this-yes, eventually, I do send/receive fine, once I've poppedd my passwords in. 
I think you are right in that BT seem to be having unique server/login issues...at least this is what I've read elsewhere too.
Iroonically, this AM I opened my new Mac and have *not* been asked for passwords so perhaps the changes I made in the settings yesterday (keychain reset in Mac) and also changing it from smtp.....to mail.btinternet.com solved the issue...who knows? All I know is this last week I've nearly lost the will to live on more than one occasion, from the transition from PC Windows Live Mail to Outlook for Mac.

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