IOS8 Installation Hung at Terms and Conditions

I began installing iOS8 on my iPad Air. I have a gray page that reads "iCloud Drive" at the top. In the center is a white screen that reads "Terms and Conditions," then "Send by Email." Below, conditions are listed. At the bottom are two choices - "Agree" or "Disagree." Pressing either does not advance the process. If I press the home button, I get a response: "iPad Not Set Up" below which is "Continue." Pressing "Continue" gets me nowhere.

I just bought an iPad 2 and have the exact same problem. I downloaded 3 podcasts from iTunes (free) and they showed the download status in the download button but once completed I get the single clickable message "iTunes Store Terms and Conditions..." and nothing else. I cannot access my downloads. I logged into my iTunes account on my PC and downloaded the same podcasts but I still cannot do anything on my iPad in iTunes. I can download Apps (paid and free) from the App store without any issues.
Here is what the screen looks like:
http://imm.io/4B3N

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    http://imm.io/4B3N

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