Outlook 2010 Office 365 Direct Access Forced Tunnell Disconnected

Scenario
Windows 7 / Outlook 2010 SP2 + Patches Clients using Direct Access and configured for Forced Tunneling. Clients connect via a webproxy via DA Policy. User mailbox is migrated to Office 365 / Exchange online.  

Problem
When on WAN / LAN normal Wi-Fi, there are no issues. But when client connects over Direct Access, Outlook will not connect to Office 365 and says disconnected.  Windows 7 / Outlook 2010 is fully patched.  (this may be where the problem lies). Access to webmail, normal internet is fine.

Solution / Workaround
At the time of writing there is no official word on Microsoft on this issue. (Although we have a pending case, in which I will update accordingly).

But after trial and error, I stumbled across this KB.  (Not directly related but started the cogs turning.)
So I reversed this setting to Disable MAPI/HTTP (MS new way of connecting to Exchange) by adding the below Key.

Key: HKEY_CURRENT_USER\Software\Microsoft\Exchange
DWORD: MapiHttpDisabled
Value: 1

Note: The setting takes a few minutes to kick in, after it updates via AutoDiscover.

So how do you know when this is kicked in ?

 OK,  so where you would normally see the “connection” tab in account settings, when MAPI/HTTP is enabled,  This disappears..:) Once this is disabled.  It reappears..,

 

Once this became active. Outlook connected Via Direct Access !!!!   Thanks MS. Await the Official KB / Hotfix....