In Windows 8 users have an option to login with online Microsoft Account (Windows Live Id). Users also have an option for creating a local user account but online Microsoft account gives some advantages. If you work on many computers then using online windows account will help you to synchronize your work. Your various Windows settings, themes, passwords and app purchases will automatically synchronize across all these computers. It is more secure because every time someone logs into a new Windows 8 computer using your Microsoft Account, the system will send you an instant email notification to confirm the same.
But windows 8 has some issues while using your online Microsoft account or Live Id. Many users who use a long length password are unable to log into their windows with the correct password. This problem was also discussed in the Microsoft Developer network forum few months back. But the problem is not patched yet. I saw a post by Amit Agarwal reporting the same issue.
In WIndows 8, it accepts password only of length 15 characters. So all the passwords more than this length will not be accepted because Windows will take only first 15 characters.
[SOLUTION]: If you are also facing the same problem, go and change your windows live password to the password with length less than 15 characters.