Thumbscrew - just tried logging in for web mail & got the same as you - "Could not connect to the specified mail server. Please check your account settings."
It did accept my log in details, as I could start to create an e-mail. Sent a test e-mail, but it said - "mail sent, could not copy it to your designated folder". The e-mail was sent though, as it appeared in the account I sent it to - not Tiscali !!