I added two-factor authentication to my Windows (outlook.com) account. Since then, files opened from my desktop SkyDrive synced folder won't upload when saving. Any suggestions?

(I have the desktop (not- Metro) skydrive app installed. I have a folder (\users\me\SkyDrive) on which my files are stores. I open an Excel file (users\me\SkyDrive\file.xlsx) in Excel. I save from Excel and close. I am signed into Windows 8 with my outlook.com account. I am signed into Excel with my outlook.com account. I am singed into skyDrive with my outlook.com account. However the file won't upload, and I get the error in the 'Microsoft Office Upload Center'. Which is weird as I am saving my my c:\ drive, which is synced with Skydrive. So, skydrive should sync it, not MS Office. 

I am at a loss. I can't sing out of MS Office, as I signed into Windows 8 with my outlook.com account. I don't want to de-link my windows 8 with my computer, as I like the syncing function. Hrm... 

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