no problems here. log a ticket with o365 as gehenna suggests.
if the problem goes away by changing the DNS servers, then its likely that the problem is not with the routing - more likely a cached dns entry somewhere. you can always first try flushing the local dns cache on a client by running the "ipconfig /flushdns" command from the (admin) command prompt.
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From their machine using Woosh's DNS can you ping portal.microsoftonline.com and get a proper result.
There was a bug/feature in BIND as a Name server a while back which meant you could not look up portal.microsoftonline.com due to the way microsoft was doing their DNS..
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