iPhone will not accept MSN e-mail password change

HELP
I have an e-mail account through MSN that was recently hacked. I changed my password through my MSN account on my home computer. I went into my iPhone and changed the password to the same thing for both the incoming (pop3.live) and outgoing (smtp.live) servers. I double, triple, and quadruple checked that I had the correct password. I verified all the settings (SSL turned on, port numbers, etc.) Everything checks out, but I continue to get the message that the e-mail address or password is not correct. I can sign on to my MSN mail from everywhere else but not my iPhone. Is this an iPhone glitch or am I missing something? Thanks for the help.
iPhone 3G iOS 4 Model MB702LL