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Doesn't seem like you have disabled everything locally. In any case, you can 'instruct' Outlook to bypass the local autoDiscover responses by deploying the reg keys in this article: <a href="http://support.microsoft.com/kb/2212902" rel="ugc">http://support.microsoft.com/kb/2212902</a><br />
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The only thing you need working for Exchange Online is the HTTP redirect method.
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Doesn't seem like you have disabled everything locally. In any case, you can 'instruct' Outlook to bypass the local autoDiscover responses by deploying the reg keys in this article: http://support.microsoft.com/kb/2212902 [http://support.microsoft.com/kb/2212902]

The only thing you need working for Exchange Online is the HTTP redirect method.

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Thanks for the replies. I will try these today and report back as to what worked.
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Thanks for the replies. I will try these today and report back as to what worked.

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We just migrated a client from Exchange 2010 on premises to Exchange Online using the cloud only method. I currently have all the Exchange services disabled on the Exchange server and have new Outlook profiles configured for the O365 accounts and everything works fine. <br />
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The problem is that every couple of days a person or two will tell me they are being prompted for their credentials and their password is not working. When I look at their profile, it has reconfigured itself to point to the local server name. im not sure how a functional live profile just changes itself but im not sure where else to look.
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We just migrated a client from Exchange 2010 on premises to Exchange Online using the cloud only method. I currently have all the Exchange services disabled on the Exchange server and have new Outlook profiles configured for the O365 accounts and everything works fine. 

The problem is that every couple of days a person or two will tell me they are being prompted for their credentials and their password is not working. When I look at their profile, it has reconfigured itself to point to the local server name. im not sure how a functional live profile just changes itself but im not sure where else to look.

Outlook with on-prem Exchange server after O365 Migration

Exchange is the server side of a collaborative application product that is part of the Microsoft Server infrastructure. Exchange's major features include email, calendaring, contacts and tasks, support for mobile and web-based access to information, and support for data storage.

Exchange

Microsoft Outlook is a personal information manager from Microsoft, available as a part of the Microsoft Office suite. Although often used mainly as an email application, it also includes a calendar, task manager, contact manager, note-taker, journal, and web browser.

Outlook

Office 365 is a group of software plus services subscriptions that provides productivity software and related services to its subscribers. Office 365 allows the use of Microsoft Office apps on Windows and OS X, provides storage space on Microsoft's cloud storage service OneDrive, and grants 60 Skype minutes per month. Office 365 includes e-mail and social networking services through hosted versions of Exchange Server, Skype for Business Server, SharePoint and Office Online, integration with Yammer, as well as access to the Office software. All of Office 365's components can be managed and configured through an online portal; users can be added manually, imported from a CSV file, or Office 365 can be set up for single sign-on with a local Active Directory using Active Directory Federation Services.