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I'm creating a Sharepoint intranet solution in my site and I want to be able to give each user a personal library/list of they're files that only they can view/edit. How is this possible in Office 365 - SharePoint Online?

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Office 365 is not different from On-Premise SharePoint Sandbox Environment from a Development point of view.

So while building the solution if you build with keeping the Sandbox restrictions in mind, you will be good to go.

For your particular problem, I would look into User Permissions. Allowing only the authorized users to view/edit the list.

Here is a link to get you started with the SharePoint Client Object Model and User Permissions: http://blogs.technet.com/b/speschka/archive/2009/11/01/using-the-sharepoint-2010-client-object-model-part-5.aspx

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Thanks, I looked into User Permissions and that solved the issue. Had to break the inheritance on each folder. –  Alexander Feb 10 '12 at 14:06

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