we are getting ready to deploy lync services from office365.  we have Exchange2010 server on prem and AD2008 on prem.  Photos work fine from AD with outlook 2010 and 2013 for windows and with 2011 for mac.  Lync 2010 and 2013 for windows seems to work fine also.

Mac users however with lync 2011 ver 14.04 cannot see photos.  Obvious things are set properly -- show my photo pref is activated.  when you select the contact  card -- the users outlook address card opens up and the photo displays.

fundamentally I know that the photo use on the mac is different than the windows -- they are cached locally in outlook and do not refresh when the AD photo is updated.  but this should not affect Lync's ability to find my AD server and grab a photo.

I have a feeling that I need to add a directory service somewhere.

For the problem related with office 365, you should post your question in the following forum

http://community.office365.com/en-us/forums/default.aspx

This is not an office 365 issue -- it is a lync 2010 for mac client issue.