Why am I unable to set up email address, problem connecting to server appears all the time. I am with movistar network, and the phone was unlocked. Is this causing the problem? Please help.

It may help to first tell us what you've done so far to try to set up your email.

Also, do you have a BlackBerry data plan on your phone?

No, do not have data plan as far as i am aware. just pressing set up e mail and comes back with problem connecting to server, retry.

You need to contact your carrier and add a BlackBerry data plan in order to get the email working.