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Hi Chris, we have similar problem. We have been using the incomming mail feature on Moodle 2.9.x without any trouble. It took half an hour to get the right IMAP Settings.

After upgrading to 3.0.x authentification to the IMAP did not work anymore.

So we tried some different settings without any success.

Using the same settings on the same IMAP servers with a desktop client did work.

We will get deeper into it as we find some time and will report bug if there is one.