Apparently something is missing in the instructions -- at least I couldn't find it and had to spend an hour testing different methods. Using WinXP, Thunderbird 2.0.10, ATT DSL-att/yahoo, & Avast 4.8.
Deleted AVG & installed AVAST. Pop server read 5100, no SSL, server 127.0.0.1. Couldn't send a msg. Changed it to ATT default: pop.att.yahoo.com, use SSL, 995 and could send/receive. However, Avast is not scanning as proven by lack of txt msg at end of test emails. Eventually changed it to port 110 & secure connection to never and that works.
Then for SMTP changed it from port 465, with SSL to port 25, no secure connection and that works!
Searched and searched help, tutorials, website and did not find the answer. Finally got a clue from the forum where one inquired as to SeaMonkey. Although it didn't completely provide the answer, it put me on the right track. Interesting that the website reads that with version 4.5 no changes need be made -- and there is no mention of ports and security. Without this information, the average user will be either not use Avast or will use it without full protection and not be aware.