Office 365 user can use OWA but not connect with Outlook after deleting and recreating user.

Problem is that soft deleted user in AD recycle bin is conflicting with newly created user.

Solution:

• Download and install new 365 PoSH tools from http://onlinehelp.microsoft.com/Office365-enterprises/ff652560.aspx
• Connect to posh and log in.

> $Session = New-PSSession -ConfigurationName Microsoft.Exchange -ConnectionUri https://ps.outlook.com/powershell/ -Credential $Cred -Authentication

Basic -AllowRedirection

(prompt for admin credentials)

> Import-PSSession $Session
> Connect-MsolService

> Remove-MsolUser -RemoveFromRecycleBin -UserprincipalName useremail@domain.com

• User will be deleted from recycled bin after about 30 seconds.
• Rename new user to old user in MS Online admin panel.
• User can now send and receive email in outlook as normal.