Entourage Error: -3260, can't connect to the Mac mail server.

Total failure.

"Entourage cannot connect to the server. Verify that your computer is connected to the network."

This error just appeared from nowhere. Started by looking around for info. Came across signing up with OpenDNS to get dynamic DNS address, did that. nothing happened.
Deleted account and tried to create new, same error. It even doesn't let me to create one in Entourage. I can get as far as verification and it says that server info is wrong and gives error.

Ok decided to create totally new account on my mac and see if it work, nop nothing, same error.
When I go in system preferences under DNS tab, there are only ones which I entered as per Open DNS website.
In same time my yahoo mail works fine with no problems. This happens only when I'm trying to attach my mac.com mail to Entourage.
Asked questions on different forums but no solution so far. Maybe you guys have better knowledge.

Not sure what else I can do, and by the way if I press on Microsoft News Server I get exactly same error.

Help!!!!!!!!
Thanks