I had trouble accessing my Microsoft account while setting up my new Lumia 1020. Interesting comment from the Chat support person about WP 8.1 below
Jim B.: The authenticator is a separate device that uses password algorhythms to synchronize your sign ins.
John: OK seemed to work - thanks very much. I didn't see this in the FAQ section?
Jim B.: It's fairly new, and won't be a problem for long. The issue is that the Windows Phone 8 login system was designed before 2 Factor Authentication was implemented, so it's not designed for it. The 8.1 update coming soon fixes that problem.
John: OK but I hear 8.1 Phone is 1st or 2nd quarter 2014?
Jim B.: Nope, 8.1 is currently in the carrier's hands for final testing against their systems. It should be released to the phones in the next 1-2 months.
Jim B.: The authenticator is a separate device that uses password algorhythms to synchronize your sign ins.
John: OK seemed to work - thanks very much. I didn't see this in the FAQ section?
Jim B.: It's fairly new, and won't be a problem for long. The issue is that the Windows Phone 8 login system was designed before 2 Factor Authentication was implemented, so it's not designed for it. The 8.1 update coming soon fixes that problem.
John: OK but I hear 8.1 Phone is 1st or 2nd quarter 2014?
Jim B.: Nope, 8.1 is currently in the carrier's hands for final testing against their systems. It should be released to the phones in the next 1-2 months.