Outlook 2010 Office 365 compatibility.

I'm trying to add an email account in a freshly installed Office 2010 SP2 with all updates installed but it will not connect. The problem is repeatable on other machines, too.

Is there an incompatibility between Office 2010 SP2 and Office 365?

Thank you!.

PS: The only working method is:

1. Install Microsoft Office 2010 SP2. (download links towards the middle of the page)
2. Restart if required, now remove all email profiles on the machine via the mail (32bit) utility
3. Create a new mail profile and open Outlook
4. When the wizard loads choose to configure a new exchange account
5. For the server enter: outlook.office365.com
6. Email and password should be the Office 365 email and password
7. Click "More Settings" in the bottom right
8. Under the Advanced tab uncheck "Download shared folders".
9. Under the security tab, in the "Logon network security" drop-down select Anonymous Authentication.
10. Under the 'connection' tab check "Connect to Microsoft Exchange using HTTP".
11. Click "Exchange Proxy Settings" use the URL: outlook.office365.com
12. Tick "Only connect to proxy servers that have this principal name in their certificate" and enter: msstd:outlook.com
13. Check both the checkboxes
14. Under "proxy authentication settings" drop down select "Basic Authentication".

Now reload Outlook and sign in at the first prompt. Be sure to check "Remember password".