Have you tried to log into the yahoo email account from the web? If you are able to log into the yahoo account there is not reason why you can't log in from the pre.

I was having the same problem when I set up my Pre. I went and logged into my yahoo account and found out that I was using the wrong password. It took me a few tries by I got my Yahoo email to work on the Pre.

Always start with deleting the account and staring with a new one.

good luck.

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