Scenario:

You have a home network containing a Windows Home Server 2011 and a Windows 8 PC logging in with a Microsoft Account.

Problem:

When you are logged in to the desktop with a Microsoft account
(ie: myaccount@hotmail.com)

• You are unable to access your fileshares with the correct read and write permissions taking effect.
  OR
• You are constantly asked to reauthenticate after already having entered your details

Reason:

WHS2011 will not support authentication from client PCs using Microsoft accounts.

Solution:

1. Log in to your WHS2011 desktop and open the Dashboard.
2. Create a new equivalent user to authenticate with.
   For example, if your Microsoft account is myaccount@hotmail.com, create a user called myaccount.at.hotmail.com. (This is not a required template, you could easily name the account myotheraccount. The password can be anything you like but for consistency’s sake you could set the password the same as your Microsoft account.)
3. Log in to your Windows 8 PC and go to the Control Panel.
4. Locate and open the Credential Manager
   
5. Select Windows Credentials, then Add a Windows Credential
   
6. In the Internet or network address field, enter the name of your WHS2011 server
7. Below, enter in the username and password created earlier in Step 2.
   
8. Click OK

Now, whenever authenticating to your server named above whilst using this Microsoft Account, your Windows 8 machine will use the details defined here.

Thanks to Nate at superuser.com for his guide and screenshots.