Cannot get iCloud to work on upgraded iPhone

This week I upgraded my iPad (iPad 2), & iPhone (iPhone 4) to IOS7.
I did the iPad2 first. There were no problems with the upgrade to IOS7. After upgrading, I logged into iCloud on my iPad using the correct ID and gave correct password. There were no problems. I was able to wanted to turn on "Find my iPad" without any problem.
I upgraded the iPhone4 next. There were no problems with the upgrade to IOS7. After upgrading, I logged into iCloud, again using the correct ID and correct password. I immediately received this error message:
"Photo Stream - Photos for the iCloud account "iCloud" cannot be accessed. Review your account information in Settings".
You are given the choice of "Ignore" and "Settings". I pressed the "Settings" button and arrived at the main settings screen, with no other information. However, the iCloud setting is greyed out (disabled). I cannot access any iCloud settings. Likewise, in the "Photos & Camera" setting, the icons for "My Photo Stream" and "Photo Sharing" are greyed out (disabled).
Nothing I do will allow me to access iCloud settings.
I tried turning off the iPhone (resetting it). Once I turn it on again, I go to settings/iCloud. Tapping this brings up the iCloud login. I enter the correct password (for the correct ID), and immediately get the above "Photo Stream..." error.
I have tried this 4 times now. I can say with some confidence that resetting the phone does NOT fix the problem.
SO - what is going on, and how can I get iCloud to work on my iPhone?
Thanks.
p.s. The iPad's iCloud is working just fine.

If your iCloud setting is greyed out, go to Settings>General>Restrictions>Accounts (near the bottom) and set this to Allow Changes.

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