Help Verifing my payment, it's not letting me.

I just got a I pod touch for Christmas.
And It was working fine untill around 12 am,12-26. I was getting free apps and then it stopped. I got a message saying I needed to verify my payments and then took me to the Edit Payment area on Itunes. I did all the feilds correctly, (im using ipod cards, not credit) and hit done.
I get this message "unable to process at this time, try again." I have been trying for 20+ times. Everything is up to date such as Itunes and what not.
It seemed to happen right after I downloaded Icloud.
Any solutions on how I can do this, or when? I cant get new apps, I can only play the ones I got.
thanks.(:

King Penguin,
Your response does not address the actual question.
The issue is that once downloaded to a device (iPhone) etc. It cannot be deleted via any means. Went through troubleshooting with Apple on phone last night and they're puzzled by it... it's getting sent to their engineers.
The larger issue is that the album downloads AUTOMATICALLY when you have your purchases synced, on wifi, and listening to music on full shuffle.
Telling people to just "hide it" and change your phone's settings to not sync is a pretty big "whoopsie" by Apple and Apple Support Community members.
BAD MOVE APPLE!

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Help Verifing my payment, it's not letting me.

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