Shawn,
I was able to access the machine by means of booting Linux from a USB and using 'Parted Magic'.
On a Linux level I was able to reset the password with the command:
chntpw -u User1 SAM **** in directory /Windows/System32/config
Unfortunately this did not do the trick because as I have described above the problem is not that I had lost the password to 'User1', but that the Outlook Account has "replaced" the local account in the login interface.
With the command showing all the users available in the system
chntpw -l SAM
I noticed hat there were four accounts (Administrator, Guest, User1 and one more that I cannot recal now) listed as existing. The strange thing (to me) is that the Outlook account is NOT listed.
Question: is there away from within Linux to modify Windows 8.1 to revert back to using my local account instead of the Outllok account???
Also some good news: by means of the Linux access I can now at least backup the data on the hard drive.