I created a new Gmail account last year.  When I attempted to set up Outlook 2007 to handle my messages, I failed.  I did everything by the book, or so I thought, but nothing worked.  Outlook kept prompting me for my password.

The solution

I came across the solution that I had to reset my CAPTCHA.  This explanation is posted on the Google site under “Common Errors”:  https://support.google.com/mail/bin/answer.py?hl=en&answer=86376#

If you use two step verification on your gmail account, resetting you CAPTCHA will not be enough to get it working.

You must also Create an Application Specific Password.

I missed this step the first time around, so I thought I’d share it here as just one resource available to you.  I do not know if all of this information was available the first time I tried this a year ago, or if I just simply overlooked it.  But in case anyone else is having the same difficulties, here it is.  Enjoy!