Ios5 hangs iPod touch

I applied the iOS5 upgrade to my WiFi only iPod touch, and all indicated that it went well.
Then on reboot of the device it wanted some configuration; WiFI connection, "Backup to iCloud?" and "Find my iPod touch".
It is now stuck on the later one, and no mater if I choose yes or no, next won't go anywhere.
The only option I get is on the main button, to "start Over", "erase the device to factory resets".
I did find that when trying this the first time, I got a slew of Emails sent to my registered Apple account address asking for confirmation of the address.
Since I was not on email then,  I didn't respond, and now it has locked me out of my Apple account.
(I've done several iterations of revalidating, and it is in a loop!)
It knows my email, and I can validate via responding to validation questions and get logged in, but then it claims to send me a validate email, but never does.
So;
  How can I get Apple to unlock my account,
  How do I recover the Ipod touch.
Because the iPod setup may be trying to validate teh recovery email, these may be related.
But, OTOH, even if I say do not try to recover lost iPod, it wtill won't progress in setup.
Hints or help please?

I found a solution:
   http://apple.stackexchange.com/questions/27516/ipad-hangs-during-ios-5-upgrade
Yes, it worked for me too.
Just some software bug - Argh....

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