Thanks Diane! I disabled the anti-spam features and everything is running smoothly. I did open another case with Office 365 support and this time they were quick to assist and in the resolution email they said...:
"You can disable the spam setting on the Exchange server as the emails are...
A majority of my clients are running SBS 2011 and Exchange 2010. We've begun rolling out Microsoft Exchange Online Protection (EOP) to our clients because it's less of an administrative overhead for us and is an excellent SPAM and anti-virus solution.
I have found most of the documentation...
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