Found these errors in the POP3S log file:
2010-12-16 19:37:17.546885500 Couldn't verify MAC or pad of record data
2010-12-16 19:37:17.546969500 sslio[8587]: fatal: ssl decode error: bad record mac
These in itself didn't help particularly but I started looking in other directions as I saw that Entourage/Outlook was actually making a connection but failing once it began the transaction.
The client had his email software set to leave email on the server for 30 days. However his MailDir/cur folder contained email files close to two months old. After using a test account with over 2000 spam emails it too failed with Entourage/Outlook. But delete the majority of those emails and it worked fine.
So went to the client's account, backed up his /cur folder and then deleted anything over 30 days and lo and behold it worked without problem.
So, problem fixed. But what was really the problem? Any theories?
Cheers,
Adam