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Distribution Groups not working with Office 365. Server 2012 Essentials R2

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Hello

My office 365 intregration appears to work fine for every thing but the distribution groups intergration. The tab of each user has the following error message. "no proper license can be found. Check your subscription and try again" with a retry button. hitting retry gives the same message. The tab in the dashboard shows the existing groups but with no information on members.

I am integrating with and existing 0ffice 365 E2 account and a fresh install of Server 2012 Essentials R2 with users added locally before the integration.

Any ideas on how to get distribution groups working?

Gord


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