I'm working with a computer that has setup a local account connected under Windows Live ID. The user can login to Live ID (like hotmail) from another computer with the correct credentials. However from the Windows 8 computer using the correct password it indicates.
That password is incorrect. Make sure you're using the password for you Mircrosoft Account. You can always reset it at account.live.com/password/reset.
Now, I've used NTPASSWD to reset the password, but it seems that since its not a "Local Account" it wont take the new password or blank one. EDIT: NTPASSWD will reset/set a password, but windows will not authenticate using that.
This account also has a "PIN" the user who also has forgotten it.
I also tried to enable/password set the local Administrator account but it does not show up for login.