Can't login to App Store on more than one device

Since resetting my Apple ID password I now cannot fully login to get downloads for apps etc in the App Store. I have to revert to downloading on my PC they syncing, very frustrated with this one, I've tried everything including doing a full power down and restarting, resetting my password again, checking the time is correct, all the crap that the apple cust services suggested. Absolutely drained with it all!
both are running latest ios
on the phone I tap settings/itunes & App Store /Apple ID sign out, then tap password to sign in, so far so good.
GOto to the App Store and tap any free app, click install and then all I get is the blue spinning circle
this is on wifi and cellular
when I do the above on my iPad it's slightly different
tap settings/itunes & App Store. I don't have the option to sign out because it never is signed n. I tap the password and enter it, tap the sign in and the sign in text goes from blue to grey, then back to blue. That's all it does, keep tapping away at sign in but it won't.
Apple customer services are taking me on a long circular journey of despair and quite frankly they hadn't got a clue how to understand my issue nor resolve it.
any suggestions welcomed

adding info...
  trying to log in to itunes on either computer I get a 1008 error message.
  on machine runs sophos antivirus, the other avast.  disabling antivirus has no effect.
  no 3rd party firewall is running.
  repair disk permissions had no effect.
  removing ~/Library/Preferences/com.apple.iTunes*  and com.apple.mobile.iTunes.store.plist* had no effect.
  changed computer name in Computer sharing, no effect.
any ideas?
got the 10.8 update from the app store when it came out though i hadn't applied it, catch 22 prevents me from updating the system to see if that helps.

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