Thank you. Yeah I did have the wrong value in there. After correcting it the SkyDrive item reappeared in the Windows Explorer navigation pain. After doing this the OneNote password error went away. It appears that on Win8.1 with OneNote2013 it must use the OS sky drive integration directly...
Can't restore skyDrive to Explorer
This worked to remove sky drive. I think it may have caused an issue with OneNote (which Syncs to skydrive).
I tried to restore the registry with the instructions above but the SkyDrive folder does not re-appear in the navigation pane. I've restarted but no...