Problem with Office 365 working with Outlook 2007/2010:
We recently decided to move our internal email (Currently running our our SBS2007 Server) to Microsoft Office 365. We have opened an Office 365 account and loaded all of our office workers email profiles. We made the proper changes to the DNS for our Dot Com name. Auto discover is functioning normally. I disabled all of the Exchange functions on our SBS server so as not to interfere with the setup of the Office 365 profiles for our users. Each workstation is currently using Outlook 2007. When we try to setup the user for Office 365 it keeps asking for a password for the user. The password is correct since we login with the users ID and password on the Office 365 Portal without issue.
If I go to another workstation outside our network and try to load the user it works with outlook. Only when we try to setup the user within our current network does it keep asking for the password. I am thinking that it has something to do with our server but Im not sure. I am hoping that someone has come across the same issue and may have a fix for me.
We tried researching it on the web and applied several fixes but no joy.
All of the setting within the Outlook setup are correct and verified. Microsoft is absolutely no help.
Any suggestions would be greatly appreciated.