Office 365 Web Portal - We don't recognize this user ID or password

We are currently in the process of rolling out Office 365 in our organisation. This deployment is to 80-90 users, for up to 10 users i am having the following issue.
Users appear to be successfully syncing from our AD to the O365 cloud using DirSync. I have verified this by changing an attribute of an AD user and
performing a sync and confirmed the changed attribute is shown in the O365 administrative portal.
When attempting to activate the Office suite after installation the activation fails stating that the username or password is incorrect. When this
user attempts to login to the online portal at portal.office.com the user receives a "We don't recognize this user ID or password". I have confirmed that the user id and password are correct and that the user is listed in the admin portal and has
the relevant subscription assigned to them.
From within the O365 admin portal (where i am a global administrator) i have blocked this user from being allowed to sign in or access services within
the user’s settings screen. On attempting to sign in with this user on the O365 portal it informs me that the user is blocked and I need to contact an administrator. This is what I’d expect, to me this confirms that the user I am manipulating in the O365 portal
is correct,  but after allowing sign in once again on the user’s settings page I receive the same “We don’t recognize this user ID or password” error message.
Is this something anyone else has come across and successfully resolved in the past? If more detail is required to assist let
me know.

Hi,
Thanks for sharing the steps here. And good to see that it works for you, at least for one affected user for now. 
If you have any follow-up questions about this, I would suggest you to post in the dedicated forum of
Office 365 Community, where you can get more experienced responses. Current forum only focuses on questions and feedback for Microsoft Office client, there is not so much about
Office 365 admin/host/integration aspects here:
http://community.office365.com/en-us/f/default.aspx
The reason why we recommend posting appropriately is you will get the most qualified pool of respondents, and other partners who read the forums regularly can either share their knowledge or learn from your interaction with us. Thank you for your understanding.
Regards,
Ethan Hua
TechNet Community Support
It's recommended to download and install
Configuration Analyzer Tool (OffCAT), which is developed by Microsoft Support teams. Once the tool is installed, you can run it at any time to scan for hundreds of known issues in Office
programs.

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