Cannot create account "The device is no longer eligible for creating an Apple ID."

I just updated my MacBook Pro but an unable to create an iCloud account. I attempted to sign in (as prompted after updating)...but it says:
"This device is no longer eligible for creating an Apple ID."
I know my username and password or correct. I have never signed up for iCloud or MobileMe in the past. My login and password work elsewhere (ie. Apple.com, iTunes, App Store, etc.)
I should have my new phone on Friday, wanted to try this out before I got the phone.
Actual OS is 10.7.2...not an option on the drop-down.

Hello
Give it some time. iCloud "just" went online and although big companies should be aware, that a bazillion of users will register / subscribe on Day One of a new feature, in most cases (like Sony's PSN, Microsoft and others) these things never work out as planned.
So be patient and wait a few hours or even some days and then give it a try. I'm pretty sure the whole iCloud Network is right now under "heavy fire".
Greetings

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When I do say new email account reached the limit of this device is no longer eligible for the establishment of icloud account

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You can create an account on another device or Mac which hasn't reached its limit, then you will be able to sign into it on the device in question.
You can create three additional email addresses (not accounts) within each iCloud account in the form of 'email aliases' - these deliver into the same inbox as the main account. (In fact it's a good idea to give out alias addresses, rather than the main address, because if they attract spam you can easily change them.)
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Cannot create account "The device is no longer eligible for creating an Apple ID."

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