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Can't Activate Office 365

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So I purchased a years subscription of Office 365 and off to a flying start: the damned program refuses to accept my Microsoft credentials.

The "My Office Account" web CP part is done and I appear there. The "Activate Office" dialogue comes up when I open Word etc. and I enter my Outlook.com email. Then it asks for password and I enter the correct password. There is no error/"failed" message, the stupid box just goes away and the program stays unactivated, no matter how many times I enter it. I used the full "repair" option Office 365 which predictably made no difference. The My Office Account web page showed 1 PC install used (the PC I installed it on). I deactivated the one install from that page, but I still can't activate the office programs, and now it stays on 0 PC installs used.

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