It sounds like AOL services may be being blocked by your ISP, a good test to run would be to try setting up AOL mail through Outlook on another computer using outlook in the house. If you get the same issue with the second computer I think this may be the issue and you would have to contact your ISP support for assistance.
You could also try rebooting your modem/router and try again.
I assume you are in your home, using the internet there. If you have a hotspot you can enable on your phone to connect your computer wirelessly, I would then try setting up the AOL account in outlook.
Let us know the results.