For those who are looking at this thread and are frustrated that there is no actual solution for you, here is the answer:
If you need to set up your email on a Bell Iphone and your ISP email address won't allow you to use their SMTP server (Cogeco, Shaw, etc...) you must set the iphone to use mail.1xbell.ca as the smtp server. (keep using your isp pop server)
Just use the MD5 authentication (the first one in the list)
I have set this up and tested on a couple of devices in the last few days and it works like a charm.
If you have a shaw email, by the way, use pop.shaw.ca as your Pop server.