By Paul Thurrott
With Windows 8, its preferable to sign into your PC with a Microsoft account—or what we still call a Windows Live ID—to take advantage of SkyDrive-based settings sync and deep integration with several new Metro-style apps and other capabilities. But if you signed in with a local account for whatever reason, you can still take advantage of Windows 8’s Microsoft account integration. You just need to convert the local account.
Source: Paul Thurott's SuperSite for Windows