Office 365 and Sugar E-Mails

I know this has probably been answered many times but i have looked on here and cannot find any fix for this issue that I have.

Error: SMTP Error: The following recipients failed: SBL@********.com: 4.4.62 Mail sent to the wrong Office 365 region. ATTR35. For more information please go to https://go.microsoft.com/fwlink/?linkid=865268 [LO2GBR01FT018.eop-gbr01.prod.protection.outlook.com] recipient@domain.com: 4.4.62 Mail sent to the wrong Office 365 region. ATTR35. For more information please go to https://go.microsoft.com/fwlink/?linkid=865268 [LO2GBR01FT018.eop-gbr01.prod.protection.outlook.com]. I have checked everything on 365 and also got MS to look as well and the settings on there are all correct. 

we are emailing out using just crm@domain.com with no authentication on port 25 when i add a 365 account to it then it doesn't sent at all. using ports 25 

Error: SMTP connect() failed. https://github.com/PHPMailer/PHPMailer/wiki/Troubleshooting

I could do with some clear instructions on how to configure email using 365 in sugar please. 

Also tried option 1 on the link

How to set up a multifunction device or application to send email using Office 365 - Office 365 

we can send out notification to each user but when they try and send emails externally to customers we get the error.

Many Thanks