Thanks for your help guys. I called Sprint Technical support and he helped me set up my account... the problem was when trying to use the Sprint outgoing smtp settings. My account was never setup! Apparantly there is a once time set up you have to do and I didn't know it.
We did it and rebooted my Touch and it's all good now! Lovin it.
I also upgraded to
Mobile 6.1 using this site and almost everything is working great inclucing being able to view youtube over my Media Player just by clicking on the link!