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There are any number of email options. If you want web based, you can use Gmail, Hotmail, or Yahoo mail. If you want a desktop client - probably the easiest is Windows Live Mail (which works with a hotmail) but there are certainly any number of other applications out there.
I personally like Gmail. it syncs offline so I'm not stranded if my internet connection is down and I can access it from any web browser. But email preference is a sort of personal choice, you have to find what works for you.
As for the firewall not working, is this the Windows Firewall or some other firewall that you are using? If it's Windows Firewall, I would again suggest updating to SP3 and it will likely fix any problems with that.
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