IOS 7 Apple ID not recognised

I try to download from iTunes or the App Store with my Apple ID I've been using for years and correct password (works on my iPad) however it just keeps reloading the enter Apple ID pop up, and if I try and do it within settings it just doesn't save or recognise my details, any ideas as it's really starting to annoy me.
Thanks

I waited until IOS7.0.4(11B554a) to avoid such problems... but its not fixed yet. I hit the exact same problem as first post. The posted fix worked, but i will clarify steps i took below:
0. I tried to "reset pswd" before consulting this forum. that did not work. the email was never sent.
1. bypass the apple ID screen... it warns you something wont work, but ignore it.
2. go to settings, icloud, scroll to bottom - hit delete or erase. confirm yes to the warning.
(apparently the search part of the problem has been fixed as i had to do nothing with search).
3. set up new iCloud account with your new Apple ID and password. Merge your data from your phone into iCloud.
4. power off, and restart. enter screen lock pswd, it will then ask for your password with your correct AppleID - and your password will work.
Killed my Sat morning, but at least I now up again...
Bob

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