Consider the following scenario in a domain environment:
A domain account and a Microsoft Office 365 account have the same user principal name (UPN).
The passwords for the domain account and for the Office 365 account differ from each other.
Active Directory Federation Services (AD FS) is not used in the domain.
The account lockout value is something other than the default value.
You log on to the domain from a computer that's running Windows 7, and then you start Office Outlook 2007.
You make 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:
2687262 Description of the Outlook 2007 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 install the hotfix package, to have us enable the hotfix for you, go to the "Fix it for me" section. If you prefer to enable the hotfix yourself, go to the "Let me fix it myself" section.
Fix it for me
To enable the hotfix automatically, click the Fix it button or link. Then click Run in the File Download dialog box, and follow the steps in the Fix it wizard.
Install the hotfix that's described in Microsoft Knowledge Base (KB) article 2687262 before you run this Fix it solution.
This wizard may be in English only. However, the automatic fix also works for other language versions of Windows.
If you are not on the computer that has the problem, save the Fix it solution to a flash drive or a CD, and then run it on the computer that has the problem.