Mac Mail can't resolve Office 365 address adding account

I'm just putting this out there, I'm sure it will be addressed soon.
Just loaded up a VM or Yosemite on my Macbook Pro so I can start testing it for our network environment.  First major glitch - Mac Mail will not resolve an Office 365 email address and allow you to add the account to Mac Mail.  This is huge considering many of our clients are hosted using Office 365 for their corporate email.  Mavericks never had issues with this, hoping its a quick fix without the need of a work around.  Ironically using Outlook for Mac 2011 works just fine, which is pretty strange to me considering it still has to resolve outlook.office365.com for the server names in autodiscovery.
Lets go Apple....this OS looks great, don't make it your MSFT Vista!

Mavericks Mail has had problems with Exchange. Many have been resolved but at this time, Outlook for Mac is a better Exchange client than Mail from reports that I have seen.
I'm trying a trial of Rackspace Exchange Email wondering if its Office 365 specific.
How are you pointing your MX & cname setting to two different services?
You said another user was able to setup. Is there any difference in OSX and email client. Compare settings.
What error are you getting.

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