You are using Mac OS X Snow Leopard, so you have to set up the iCloud mail account manually. To do it, open Mail, go to File menu (on the menu bar) > Add Account, and set up the iCloud mail account with this information > http://support.apple.com/kb/HT4864
It only applies to iCloud. MobileMe was discontinued, and if you have a MobileMe account that you haven't upgraded to iCloud, you can't use it
That worked well!! Thankyou.
To stop the 'eggtimer' continuously going round and round in the drop down email account boxes under Inbox in this Mobileme account, I went to Mail - preferences - and into advanced setting unchecked the enable and Include when automatically checking for new messages. (because I couldnt delete it.) It had even said it had information stored on the server but i had not ever set it up....
My iphone also 'created' an @me.com account.
When I tried to Add Account, i got the message: "The account Mobileme already has this host name and user name."
Stumped again ...