IPod Touch 4th Gen trouble with iOS5-iCloud

Hi,
I trying to set up my daughters 4th GEN iPod touch with iOS5 and get it talking to iCloud. I've got everytthing set up for her on our iMac, and see is "in the cloud" as far as the Mac is concerned. After downloading iOS5 and installing it, I'm going through the brief setup procedure to get the iPod talking to iCloud. Everyhting goes well until the very end when I get a window that says: "Could Not Sign In. Apple ID couldn't be created because of a server error" Is this just Apple getting crushed, or am I doing something wrong?

Hi,
Yes, I have restored from Backup via i-Cloud. I've restored the iPod to factory settings.  It seem like there is a driver issue.  I installed iOS 5.01 and updated iTunes to 10.5.3.3 at about the same time.  Win-Vista64, iTunes and iPod are all up to date.  Apple Genius, at local Apple store was also perplexed.  He suggested I ask the community.  So, here I am.
It is strange that I can connect to other computers.  But, the other computers have Win 7.  Could this be a Vista64 driver issue?

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