RE: Publishing Management Reporter 2012 Reports to Office 365 SharePoint site
Frank I believe yes and yes to your question at the end. I can't confirm it 100% but the Process Service user needs to be in AD and that user needs to have an O365 account because by default the user that runs that service is the local Network Service on that machine and I don't believe you can call that user from a SharePoint 365 site.
To get to an O365 SharePoint site you need an O365 account, unless there's a way around that but I'm not aware of one. To test it I would change the Process Service user to a user who's in AD and has an O365 account.
Tom
a.k.a "Maverick"