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Azure AD - Authentication Issue (AADSTS50020)

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I'm implementing an azure active directory based application that authenticates using the openid connect libraries. It seems that most accounts can authenticate correctly, however a specific account consistently fails with the following error.

Correlation ID: 0b2dfcc1-14d8-4b8f-9925-4d481c10036a
Timestamp: 2014-12-05 20:53:51Z
AADSTS50020: User account 'xxxxxl@xxxxx.com' from external identity provider 'live.com' is not supported for application 'xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx'. The account needs to be added as an external user in the tenant. Please sign out and sign in again with an Azure Active Directory user account.

One thing to note about the account is that it is a live account but we also have a distribution group with the same name in azure ad. Can someone please provide more information based on the correlation ID?

Thanks.
-H


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