Sorry, but I had to hit a movie after the first post. Thanks for tips.
I went home and did exactly the same setup on my Outlook on my laptop and I downloaded mail in about 30 seconds. Waahhh?
So I think I have a port blocking problem. I tried
telnet mail.mydomain.com 110 on my POP3 port at the work location and it hung. Tried it from home and got a happy "OK Hello There". So clearly something on the school's IP link is blocking my POP3 port. So it doesn't matter if I set SMTP to 25 or 587, I'm not getting authentication on 110.
I'll check with the IT guys at the other location next week to see if they are blocking 110.
I could try resetting to IMAP (port 143) but I telnetted out on 143 to dreamhost and it didn't go either so I think they have suppressed a wide range of ports for security reasons. It is very secure. I can't read mail.
So the last answers are close to the truth. Check to see if you can communicate on ports 110, 25, 587, 143, etc. If you can talk on those, then Outlook should work with SPA unchecked and SMTP server authentication on.