Hi Jonis,
When using forms based authentication to login to SharePoint Online rather than active directory login, it does not seem like the userprofileservice.asmx is functional. I get the following error:
An error occurred querying a data source
An error occurred while trying to connect to a web service
An entry has been added to the Windows event log of the service LogID 5566
The issue is explained in the following technical document:
support.microsoft.com/.../2619846
I guess there is no way around this other than to use the code outlined in the technical document? Is my understanding correct?