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Cannot connect Outlook 2010 to Office 365

I am trying to setup Outlook 2010 with my Office 365 account.  I continue to get the "The action cannot be completed.  The connection to Microsoft Exchange is unavailable..." error.  Actually, what happens first is that I am prompted for user name and password, and no matter how many times I correctly type that in, it continues to prompt me for it.  If I hit "cancel" I get the error message.

Autodiscover tests correctly, but I get this error message.  I have also followed all the steps for manually configuring Outlook (and checked several times), with the same problem.  Any help would be appreciated.

 

Vista x64 SP2 and all updates applied

Office 2010 x32 and all updates applied

 

Thanks.  Kim


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