As many of users have asked how to configure Outlook for use with Office 365, here is a step by step guide.
My Outlook is Outlook 2010, so there may be some difference if you are using Outlook 2007.
To configure your client, you have 2 way:
Use the Office 365 wizard
This should be the preferred way for client configuration as it will check if some required updates are installed or not, and if missing install them.
From the download page (https://portal.microsoftonline.com/download/), go to Step 3 and click the Set up button
This will launch a ‘on the web deployment’ tool
Check which client you want to configure (Outlook, Lync or SharePoint – SharePoint configuration will set your My Site and SharePoint sites for saving your document from Office)
Configure Outlook manually
If you want to configure Outlook manually, or if the configuration wizard failed to configure it, do the following
Open the Mail control panel
Click on Email accounts
Click on the New button
Select E-mail account
Enter your name, email address (the one with @yourdomain.onmicrosoft.com) and password
Exchange autodiscover will connect to your Office 365 tenant and set Outlook settings