Cannot complete iTunes account registration.. Good grief..

So I bought a new iPod touch from the US military post exchange in Kandahar, Afghanistan.
I have been trying like crazy to create an account with iTunes so that I can access the store, but nothing doing! I successfully created an Apple user ID, but when I try to use that to log in to iTunes, it says that the ID has not yet been used in the iTunes store and that I need to review my account.
OK, fine. I go to select my payment method, enter my VALID credit card information and billing address, and I am now told that I need to contact iTunes support to complete this transaction.
I am assuming that this is because iTunes can recognize that I am logged onto the internet from a foreign country, yet I am trying to register for an account using my address in the United States. If this is the case, is there a chance that even iTunes support won't even be able to help me with this problem?
From what I have read elsewhere, iTunes support isn't all that...supportive.
I mean good lord, I would be happy enough just to get on and access the free apps, but there is no option available for iTunes store access without first registering with a credit card. I tried using my valid PayPal account but I got the same results. After my PayPal account was verified, it still asks me for a billing address. I assume this is where the discrepancy is.
So has anyone had a similar problem and already find a solution? Or did I just spend over $200 of my hard earned money on a product that promises much, but now provides me with a very limited use?
Thanks.

If you still have problem, contact iTune Support
https://ssl.apple.com/emea/support/itunes/contact.html

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