Me, being a dumb***, figured out this problem 10 minutes after I posted it. I used "1st SMTP" for my SMTP server and FreePOPs for my POP3 server. It worked fine.
And about that hotmail thing, I got a message saying outlook doesn't support free hotmail accounts anymore.
Also, On my Windows 98SE computer (On a wireless adapter), outlook takes about 60 seconds just to load the startup screen. I think I have version 4, I will see if upgrading to 6 will help. It goes really slow.