Hi,
Turns out that the problem with Azure/365 accounts not syncing was not to do with the roles selected for the admin account on O365, but rather with PowerShell not working on our on premise Server 2008 R2 install. Support were able to identify a problem loading the msonline and azure modules in PowerShell.
To get the “import-module msonline” to work in PowerShell on our Server 2008 R2 we needed to install Windows Management Framework 3.0 onto the server. Once this was on I was then able to import the msonline module no questions asked.
Then to get the “import-module azure” to work in PowerShell (on Server 2008 R2) I had to install Azure SDK Powershell (I had installed the “Windows Azure Active Directory Module for Windows PowerShell” thinking that this was what was required):
Many thanks to ME Support for their patience in helping me get this working. Have posted this in case it can be of help to anyone else struggling to get ADSS+ working on a Server 2008 R2 machine.
James