DirSync not working after doing a cutover migration to Office 365 from SBS 2008

I have migrated a SBS 2008/Exchange 2007 on premises setup to Office 365. The migration was smooth with no issues. After migration, I changed DNS records to reflect Office 365. That is also working perfectly. Now my problem is with using DirSync to sync our local AD with Office 365. After enabling this, I get this error emailed to me for every user that was migrated:

Unable to update this object because the following attributes associated with this object have values that may already be associated with another object in your local directory services: [ProxyAddresses SMTP:UserName@domain.com;]. Correct or remove the duplicate values in your local directory. Please refer to http://support.microsoft.com/kb/2647098 for more information on identifying objects with duplicate attribute values.

I have found several things that *might* fix the issue, but I'm not sure where to go from here.

Here's what I tried:

1. Running IdFix as suggested in the link from the error.

IdFix tells me the users and groups have the error "topleveldomain" but does not give a suggested fix.

2. Performing these steps: Article Link

Step 2 resulted in errors during the 2nd script which did not create MEU, but still deleted the mailboxes (which I have since restored). Not sure if I did something wrong or this isn't what I need to do anyway.

Can someone help point me in the right direction to fix this issue. The main thing I am trying to accomplish is to have our AD sync with O365 for user maintenance and also for password sync. Any help would be greatly appreciated!!

Rick
MrComputerITAsked:
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Vasil Michev (MVP)Commented:
Try this for one of the affected users:

- Locate the cloud mailbox
- Check the value of the primary SMTP address
- Update the on-prem object that you want 'linked' to the cloud mailbox with the same value for the primary SMTP

More info here: http://support.microsoft.com/kb/2641663

One last step might be needed, please be careful if you decide to execute this. IF and only if the on-prem object has already been synced to the cloud, you will need to remove it in order to trigger the soft-matching process. Make sure that there is no mailbox associated with the synced account, no other licenses applied or any other possibility to cause data loss for the user in question. You will need to remove it from the cloud recycle bin as well. After the synced object has been removed, dirsync will again try to sync it to the cloud, but this time will soft-match it to the mailbox with the same primary SMTP.
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MrComputerITAuthor Commented:
Oh my! The email addresses in the AD are wrong!! I never caught that. The actual email addresses are "FirstNameLastInitial@Domain.com" but in AD in the "General" tab they are "FirstNameLastName@Domain.com" Has that been my problem all along??
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MrComputerITAuthor Commented:
It still isn't working. I still get the same errors.
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MrComputerITAuthor Commented:
I did a DirSync before and deleted the mailboxes. Turns out it still finds them. I purged them and now it works. I also still had to fix the UPN to get rid of our .local domain. Thanks for your help!
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