Windows 7 e-mail

I have just purchased an Inspirion 580 to replace my 8 year  old Dimension 8200. I can not locate e-mail software. Dell will not help me with this unless I pay more $$$. I am getting some instructions about something callde "windows live", but I can't get that to work either.  Have I just bought a computer that does not do e-mail? This is the message:

Unable to send or receive messages for the Scarknives (Rick) account. Windows Live Mail couldn't log on to the e-mail server using secure password authentication. Contact your e-mail provider and verify that it supports secure password authentication. To change this logon setting, in the folder list, right-click on the account name, and then click Properties on the shortcut menu. In the Properties dialog, click the Servers tab, and then under Incoming Mail Server, select a logon option.

Server Error: 0x800CCC90

Server Response: -ERR An authentication mechanism MUST be entered

Server: 'pop.fuse.net'

Windows Live Mail Error ID: 0x800CCC18

Protocol: POP3

Port: 110

Secure(SSL): No

My provider tells me that I have this secure password authentication, and the box indicated in the message is checked.  I am just a user, not a tech. Can anyone help? Is this a quick fix? Thanks so much