Local and MSFT Accounts, Win8.1 Upgrade - Need Some Help

My wife has a new laptop with win8 Home pre-installed. She will primarily use a local account, but I want her to have access to the cloud. Therefore I have gotten a Microsoft Account for her which I understand is also necessary to (1) upgrade to Win8.1 and (2) use the cloud features in Win 8.1, too. I obtained a Microsoft Account for her online at Microsoft and thus have an email address/user name and password for her. On her new laptop I have established a local account(password protected) for her called "Lovely". As such her folders are kept in c:\Users\Lovely and her settings are associated with the local account "Lovely". I want to retain the account name "Lovely" as a local account and her folders in C:\Users\Lovely after I first log on with the Microsoft Account for her. I understand if I log on with the Microsoft Account with the user name "Lovely", I won't be able to use "Lovely" as a local account name; i.e, "Lovely will be associated with the Microsoft Account.

My solution to this, and I'd like your input about it, is to rename the local account from "Lovely" to "Lovely Cloud" before log on the first time with the Microsoft Account. If subsequently I want to log on to a local account named "Lovely", I first disconnect from the Microsoft Account and create a local account called "Lovely" which again I will password protect for her. In both cases whether the log on is with her Microsoft Account, "Lovely Cloud", or with her local account, "Lovely", her folders will be associated with C:\Users\Lovely. However, to use the cloud features, she must log on with the user name "Lovely Cloud". Her setting for these two accounts will be the same except for the cloud features associated with "Lovely Cloud". If she installs a local application - not one installed from the cloud - it will be available to both "Lovely" and "Lovely Cloud" regardless of the account in which it is installed.

And just perhaps there is another way to do this for which I will be eternally grateful.

Then to upgrade to Win8.1, I log on with the Microsoft Account with the user name "Lovely Cloud" and then do the 3 hour upgrade.

Ultimately, I'll add another user to this laptop after upgrading to win8.1 who will have a separate Microsoft Account. Would I do the above process again to orderly set up local and Microsoft Account usage for that user.

Thanks for the help.

Not being able to elicit any expertise after 5 days, I shall provide some illuminati-ness. Let's start with having changed my wife's user account name from "Lovely" to "Lovely Cloud" and then logging in with the Microsoft Account I created for her. But let me digress. When I created the Microsoft Account, a "First name" and a "Last name" for her were asked for by Microsoft. Well, the account name that appears in Window 8 is "First Name" "Last Name" and underneath that will be the email address that was used to create the account. All of this can be seen by going into Control Panel - User Accounts and from there going into "Make changes to my account in PC settings".

Let's now change to a local account from the Microsoft Account. In PC settings the option will be given to log on with a local account. First you log out of the Microsoft Account. Then it will say create local account, but even though I changed the name of the local account previously from "Lovely" to "Lovely Cloud", it will suggest the account name "Lovely" which is what I wanted all along. The account name "Lovely Cloud" just doesn't exist anymore. Apparently, it wasn't necessary to change the account name from "Lovely" to "Lovely Cloud" after all. You then have to enter a password twice as if you're creating a new local account. Now you're back into a local account with the account name "Lovely". I used the password I used previously for the account name "Lovely". ( A good question is whether the password reset disk you created previously will work still for this new account.)

It should be easy to log in with the Microsoft Account. Right? Now hopefully the password you created for the Microsoft Account is "Very Strong" - like 100+ bits of entropy. And if that's so, then you're using a password manager. Microsoft account passwords can have a maximum of 16 characters (a-z, A-Z, 0-9 and Special characters with each of these subsets having minimum of two characters each). Following Microsoft's maximum password length with their rules and you get about 100 bits of entropy - AWESOME! Well, "Very Strong". But first you have to get to PC Settings. There is the way through Control panel - User Accounts that I mentioned previously and another way through the Charms bar by clicking on the Settings icon. Regardless of how you get there, that username and password for the Microsoft Account has to be entered. From your password manager you can copy your user name and then right click to paste it in the box. The password you copy it from your password manager, but don't click into the password box. You must use Shift + insert from the keyboard to paste the password into it's box. Note that the cursor will already be blinking in the password box before you paste it in.

Perhaps it's not as cumbersome as I discovered. After you log on with the Microsoft Account, you're given the option to "trust your PC" and by doing so some things are automated. I trust my PC, but, I don't trust Microsoft. Does anyone know if the logging on to the Microsoft Account is automated by trusting your PC?

Well, time to upgrade to win 8.1 - as soon as that disk image backup is done. Any advice would be appreciated about upgrading to Win 8.1. Thanks.