How do you activate the new ipod touch if it won't let you create an apple id?

I just bought 2 brand new iPod touch 32 GB products for my kids and can not create an apple id for them to be able to facetime, text message....etc? There are no instructions or real specific info from apple? I mean you have to have a email address to create the apple ID but hotmail and gmail...etc won't allow kids to have email addresses?

If you already have an account. they only need separate email addresses for FaceTime and Messages.
MacMost Now 653: Setting Up Multiple iOS Devices For Messages and FaceTime
If necessary, create the email addresses/accounts in your name and supervise their use.

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