Unable to send or receive messages for gmail account, XOAUTH authentication failed

Please can someone advise on what I need to do to rectify this? Many thanks!

Unable to send or receive messages for my gmail account. Header download for the 'Sent Items' folder did not complete. XOAUTH authentication failed. None of the authentication methods supported by your IMAP server (if any) are supported on this computer.

Server Response: Your IMAP command could not be sent to the server, due to non-network errors. This could, for example, indicate a lack of memory on your system.
Server: 'imap.gmail.com'
Windows Live Mail Error ID: 0x800CCC0F
Protocol: IMAP
Port: 993
Secure(SSL): Yes

[Original title: Please help - Gmail & Windows Live Mail compatibility error.]