There are a couple things that you should know about IDLE.
If Outlook was connected before you turned IDLE on, you will need to close it down completely (Make sure Outlook.exe isn't even running), and then reconnect.
Outlook will only receive immediate updates for folders which you are currently viewing. If you are on Inbox, and a new message arrives in Folder7, you won't immediately see it. This is a limitation in how IMAP/IDLE works. An IMAP connection has to select a folder before it can issue the IDLE command. Outlook will occasionally open multiple connections and select multiple folders that way, but I don't know the logic behind when it decides to do that.
SmarterMail 4.0 did not support IDLE, but version 4.2 and do support it. If you see the option, it is supported.