Server Error: 530
Server Response: 530 5.1.0 Authentication required
Server: 'mail.shaw.ca'
Windows Live Mail Error ID: 0x800CCC78
Protocol: SMTP
Port: 587
Secure(SSL): Yes

To correct this error I followed previous instructions to set authentication required in Server Settings tab.

But this didn't completely work I had to add @shaw.ca to my user name on incoming mail server setting.

Reason is the authentication setting instruction for outgoing mail server says to use same user name and password as incoming mail server.

This finally fixed my issue above and I was able to send mail again!!