Hi my name is ***** ***** I will be the expert working with you today to help and resolve the problem you have posted.I am sorry to hear that you are having such trouble. I will try my best to help you out and resolve the problem as quick as possible.
Follow the given steps below actions.
Manually Sync the Primary Microsoft Account on Your Phone
You'll see a message indicating the sync is in progress, and an error message if there is any issue (otherwise, you'll just be brought back to the accounts page). If there is an error, please toggle your connection between Wifi and Data to see if you can sync then.
Regarding the contacts, any new contacts created on the phone will be automatically synced to your Microsoft Account. If there is a syncing issue with the account on your phone, this can explain why they do not appear online. If the contacts were created on the phone, once the sync is successful they should be updated on your Microsoft Account Windows Live ID.
Reffered to: http://answers.microsoft.com/en-us/mobiledevices/
let me know how it goes.
I hope I’ve provided the information you were seeking. If you are happy with my service, please provide a rating. If not, please let me know so l can continue to help you. Thank you.
I believe you are able to set up at least one Microsoft account on your Lumia which is working.
If you find any problem free free to ask i will be glad to assist you.
let me know the status if the phone whenever you try to download what happens and if you get any error?