For me, this error was caused by Remoting (using a Domain account) into a Windows 8 virtual machine hosted in Hyper-V.
Using my Live account had NO issues. My Domain account (even after linking my Live account) could not get passed this error no matter what I did security wise or with changing resolutions as described as a fix for others experiencing the same issue.
So, I just remote into Windows 8 with my Live account and everything works as expected.
Hope this helps some other poor soul,