Hi George,
Thanks for posting here.
I’m very glad to hear that OIM is working well with the SBS 2011 Essentials server and Office 365.
I understand that you want to get the detailed information about how OIM works. If so, the TechNet SBS 2011 Essentials Forum will be a better choice for you. Therefore, I sincerely suggest you post the question at the following TechNet forum. This is so you will get better assistance on the issue. Thanks for understanding.
http://social.technet.microsoft.com/Forums/en/smallbusinessserver2011essentials/threads
Thanks,
Claud