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-edit2-
Ok now the yahoo plus mail server has stopped working so my second solution works best: You have to log into yahoo AT&T mail, click on settings, go to original mail settings, click on management, mail accounts, and verify each email address that you want to send with.
More info here, but make sure you go back to original yahoo mail to do this (new yahoo mail does not have this option):
http://helpme.att.net/article.php?item=11646

-original post-
The horrible AT&T tech support continues but the power of the interwebs comes to the rescue again.
This time I’ll publish the solution first:

Outgoing smtp settings for AT&T DSL and Mail.app
Outgoing server name: plus.smtp.mail.yahoo.com
Port: 465
Use Secure Sockets Layer (SSL) (checked)
User Name: [youremail]@att.net
Password: [your password]

Now the story.
I still hadn’t been able to send any email from mail.app. This representative I got on the phone knew the difference between incoming and outgoing mail servers (yay) but was unable to help. First, the server smtp.att.yahoo.com was rejecting my password. I was using port 465 and SSL as instructed by this page but it wasn’t working. The tech was unable to help until I tried signing onto att.net webmail and was unable to login either, and so told her my email address wasn’t provisioned correctly. She walked me through completing registering my account by going to http://204.60.203.227/register, which is a dumb process but slightly less offensive than the AT&T software that they try to force you to install. GENDER was required in registration but phone number wasn’t, go figure. I had skipped some of these steps to try and avoid installing AT&T software on my computer (still got an autorun installed, and they tried to activex install it from this website but I cancelled it, ugh).

Anyway, so then I could set up incoming and outgoing email from my native @att.net account, but now if I tried to send email from any other third party account I got the message “The sender address was rejected by the server smtp.att.yahoo.com.” The tech tried to convince me that I should send through my third party servers and not them (I knew she knew she was lying when she said it was their problem), but I googled instead and found this page: http://discussions.apple.com/thread.jspa?messageID=6841351&tstart=0

saiena was able to direct me to use the server plus.smtp.mail.yahoo.com instead. I’m not subscribed to yahoo mail plus, but with their crazy integration with ameritech, sbcglobal, yahoo, and all their other companies I guess this is how the integration came down to it. I don’t care, at least it works now!

-edit-
It looks like you need to verify other addresses before you send them. The above solution worked for me so I’m going to skip this step for now, but I got this email from AT&T after creating the account. It’s amazing that AT&T’s tech support didn’t know this.

---

Dear AT&T Internet Services Member,

We have received questions regarding the following error message which is received by customers when they send e-mail using a non-verified e-mail address:

“Unable to send the message. Please verify the e-mail address in your account properties. The server responded: 553 From: address not verified.”

If you have received this error message, you will continue to receive it for emails sent with a non-verified address until you verify your Yahoo! email address or any other non AT&T email addresses (e.g., name@company.com, name@college.com, name@yahoo.com, etc.). Verification instructions are available on the AT&T Help site http://helpme.att.net/article.php?item=11646. If you have already verified your non AT&T email address and are no longer receiving the 553 error message, please disregard this email.

Thank you for your attention to this matter as we work to improve your Internet service. Our goal continues to be to make you a very satisfied customer. If you are experiencing any issues and would like to speak to a customer support representative, please contact us at 1-877-722-3755.

Sincerely,
AT&T Internet Services

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