I recently tried connecting to a new crm demo in BIDS, one which was setup using the office 365 portal. I connect this way for lots of customers so didnt expect an issues, although what actually happened was I received the following error message.
IntializationFailure
----------------------------
An authentication error occurred while connecting to server "https://disco.crm4.dynamics.com/XRMServices/2011/Discovery.svc". Make sure that the connection string and credentials are correct, and try again.
Through lots of investigation I found that in order to connect using the new Portal accounts and not the WLID's before you need to install the Microsoft Online Services Sign-In Assistant for IT Professionals RTW which you can find here:
http://www.microsoft.com/en-us/download/details.aspx?id=28177
Thank you Microsoft for making this so easy to find!
