Can't activate after latest iPad upgrade. Advises me to go to iTunes but it won't get off the error screen.

Can't activate after latest iPad upgrade. Error message advises me to go to iTunes but it won't get off the error screen.

I am the original owner of an ipad and it woke it yesterday requiring me to activate it using the original apple id used to set it up.
It will not accept my apple id and password.
It does not show up in my icloud under devices.
I have tried hard restart (home + power) and itunes recovery. 
I am out of ideas and have not found anything for original owners (as opposed to someone who bought it from someone else).  I did see some posts from last year where a few people had the same problem and took it back to apple and got a refurbished unit given to them since customer service and engineering couldn't fix it.  I was wondering if this was related to the recent ios8 upgrade. Anybody else have ideas or same problem before I hike down to the apple store for mercy?

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