Steps

1. Stop FIMSynchronizationService service ("Forefront Identity Manager Synchronization Service" in the Windows Services Manager - services.msc).

2. Copy the highlighted content below and paste after the </appSettings> tag in misserver.exe.config at "C:\Program Files\Microsoft Online Directory Sync\SYNCBUS\Synchronization Service\Bin\miiserver.exe.config"

<system.diagnostics>
 <trace autoflush="true">
  <listeners>
  <add name="DirectorySynchronizationTraceFile" type="System.Diagnostics.TextWriterTraceListener" initializeData="C:\Temp\DirectorySynchronizationTrace.log" traceOutputOptions="DateTime" />
  </listeners>
 </trace>
 <sources>
  <source name="passwordSync" switchName="sourceSwitch" switchType="System.Diagnostics.SourceSwitch">
    <listeners>
     <add name="console" type="System.Diagnostics.ConsoleTraceListener">
      <filter type="System.Diagnostics.EventTypeFilter" initializeData="Information" />
     </add>
     <add name="sharedTextLogger" type="System.Diagnostics.TextWriterTraceListener" initializeData="PasswordSync.log">
      <filter type="System.Diagnostics.EventTypeFilter" initializeData="Verbose" />
     </add>
    <remove name="Default" />
   </listeners>
  </source>
 </sources>
 <switches>
  <add name="sourceSwitch" value="Verbose" />
 </switches>
</system.diagnostics>

3. Re-start FIMSynchronizationService service

4. Then re-run the configuration wizard (like first-time setup). You can find that under: Start > Programs > Windows Azure Active Directory > Directory Synchronization > Directory Sync Configuration.

At the end of the config wizard, be sure to select "Synchronize Directories Now". This will kick off a full sync with verbose logging. The log file PasswordSync.log will be placed in C:\Program Files\Microsoft Online Directory Sync\SYNCBUS\Synchronization Service\Bin.