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Slow exchange migration from off site hosted exchange

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I have been poking around here in the forums and all over the internet for a while and have been unable to get what I want to do working...  


Summary of the situation:

We have about 60ish accounts that need to get moved from a hosted 2003 Exchange, to Office 365 Exchange

In the desire to get Lync up and running, All the accounts have been created in Office 365, and all users have used Lync.

I have set the domain in the exchange configuration to be 'Shared'


Goal:

In order to be safe, and deal with a number of users paranoia around changing, I want to slowly move people to office 365, while leaving the old hosted exchange running (ie no MX change for a while).

I can very easily set a forward on the old exchange to forward the mail to the user in 365.

I can check the email in 365, and have outlook configuration working fine.


Problem:

When I send a new mail ( I know the reply to old mail issue that does still need to be fixed), I see four things that happen.

1. Via web access, I can type in a users email address NOT click on the resolve/check name and send it.  IF they do not have an active Exchange package on the user, it will correctly send it to them on the old system.

2. Via web access, I can type in a users email address, and the name resolves (whether checking or just remembering) and I get an error: 


     The e-mail address you entered couldn't be found. Please check the recipient's e-mail address and try to resend the message. If the problem continues, please contact your helpdesk.
     IMCEAEX-_O=EXCHANGELABS_OU=EXCHANGE+20ADMINISTRATIVE+20GROUP+20+28FYDIBOHF23SPDLT+29_CN=RECIPIENTS_CN=Fb076d1fb88d43e681740f2ba2c5b8f0-username@namprd04.prod.outlook.com

     #550 5.1.1 RESOLVER.ADR.ExRecipNotFound; not found ##
(It looks to be trying to find the exchange acct for someone that does not have an exchange account right now)


3. Any email sent via Outlook produces the above error (if sent to someone on the same domain that is not set up in 365 exchange).


4. users in the 365 exchange receive the emails no problem from owa or exchange, but have the same sending issue as I describe above.


I am hoping, that I do not have to do everyone in one weekend, cause something will likely be missed and someone will have a fit, and I will have a week of email support coming at me.  I would really like to be able to slowly do this, but if I am unable to send emails to folks using the MX record and NOT exchange, I fear I may have to...


Any ideas on what I am missing?  Any help is appreciated.




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