I got an ipad2 for Christmas but I am unable to connect to itunes

I have downloaded OS 5.0.1 and restored factory settings. I can connect to the internet without problems, but when I try to connect to the app store or itunes the asterisk just keeps spinning and it says "loading" until eventually it says it cannot connect to the server. Without these it is basically a $600 PDA. If it matters, it is a 32gig WiFi 3G model. Can someone please help or is it defective. I have contacted Apple support and they will get back "within 48 hours". It will probably be returned before then

Assuming you've created a proper Apple ID and filled out all of the info from iTunes on your computer, you should be able to access the iTunes app and App Store App on your iPad.
Before going to exchange this for another tablet, at this point, I am at a loss for a fix, but there is one more thing we can try. If this doesn't help, if you have , reasonable, access to an Apple Store, I would and see if they can fix the issues you're having and/or see if they can give you a replacement if they feel it's defective.
They, also, maybe able to get your iPaf working from the store since most Apple store have Wifi access.
If your iPad works fine there, you know you have a problem at home with your computer and/or Wifi setup.
I forgot to ask if you're using a PC or Mac,  if using a PC, you need to, temporarily, disable virus protection and any firewalls before activating your iPad. Return the iPad to its factory condition, then try hooking up the iPad to your computer, again, to start the activation and loading process, again.
If successful, then try using over Wifi, again to see if this clears up any issues. If still the same issues, it could be issues with your WiFi router. I believe, when using an iPad, you need to disable any firewalls that are setup in the router and may have to adjust the router's settings. You can keep any internal firewalls on your computer, but I believe that firewall security at the router level will prevent the iPad from working properly.
If this still fails, if your iPad is fully operational, try doing a reset, by holding down the home button and the iPad's on/off button until the iPad shuts down and restarts itself.
This is all I got, if still no go with any of this, take it to the nearest Apple retail store and see if they can get it to work or replace it there. The staff at the store will be able to help.
I forgot to mention, if you don't want to wait a long time, call your nearest Apple retail ahead of time to make an appointment at the Genius Bar to have this looked at.
Here's some info about troubleshooting Wifi/router issues if your iPad is still wonky.
http://support.apple.com/kb/ts3304
http://support.apple.com/kb/ts1398
This is all I got. Good Luck!

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