I've had a strange issue occur during my testing of Office 365 prior to launching it and that is several users once activated have had their password fall out of sync, including my account.
I'm almost certain it is related to the activation of an account which is rather a pain really because you need to activate and account in order to use it. While I investigate it further, I have managed to find a helpful solution elsewhere courtesy of this KB2855271 Password synchronization troubleshooting