A domain account and a Microsoft Office 365 account have the same user principal name (UPN).
The passwords for the two accounts differ, and Active Directory Federation Services is not used in the domain.
The default lockout value is set to a value other than the default value.
You log on to the domain on a computer that's running Windows 7, and then you start Microsoft Outlook 2010.
You send some WinHTTP requests to Office 365. For example, you open a shared calendar.
There are no on-premises Exchange resources.
In this scenario, you are locked out of the domain.
To resolve this issue, apply the following hotfix package:
2598374 Description of the Outlook 2010 hotfix package (Outlook-x-none.msp): June 26, 2012
Registry key information
Important This section, method, or task contains steps that tell you how to modify the registry. However, serious problems might occur if you modify the registry incorrectly. Therefore, make sure that you follow these steps carefully. For added protection, back up the registry before you modify it. Then, you can restore the registry if a problem occurs. For more information about how to back up and restore the registry, click the following article number to view the article in the Microsoft Knowledge Base:
322756 How to back up and restore the registry in Windows
After you apply the hotfix package, to have us enable the hotfix for you, go to the "Here's an easy fix" section. If you prefer to enable the hotfix yourself, go to the "Let me fix it myself" section.
Here's an easy fix
To enable the hotfix automatically, click the Download button. In the File Download dialog box, click Run or Open, and then follow the steps in the easy fix wizard.
Install the hotfix that's described in Microsoft Knowledge Base (KB) article 2598374 before you run this easy fix solution.
This wizard may be in English only. However, the automatic fix also works for other language versions of Windows.
If you’re not on the computer that has the problem, save the easy fix solution to a flash drive or a CD, and then run it on the computer that has the problem.
Let me fix it myself
Easy fix 50919
After you apply the hotfix package, follow these steps to enable the hotfix:
Click Start, click Run, type regedit in the Open box, and then click OK.
Locate and then select the following registry subkey: