Trying to understand Keychain in iCloud setup

Trying to get this figured out. I want to set up Keychain in iCloud, but since my Mac Pro is too old and not the corret firmware to upgrade to Mavericks and I just have the recently purchased iPhone 5S I tried the code. For example
1234, used on the iphone, and the code sent by sms.
Yet it states it's incorrect.
Am I missing something?

OK - turned off the clear log. Here's a run. It fixed the 99999 business - but not the "may cause the keychain to be locked"
Verification started
Checking keychain configuration for Chris Searle (user ID=501)
Home directory is /Users/chris
Checked login keychain
Checked password for ~/Library/Keychains/login.keychain
Checked settings for ~/Library/Keychains/login.keychain
Settings for ~/Library/Keychains/login.keychain may cause the keychain to be locked
Current values: lockOnSleep=no, autoLock=999999 mins
Checked default keychain
Checked contents of ~/Library/Keychains/login.keychain
Verification completed
Repair started
Checking keychain configuration for Chris Searle (user ID=501)
Home directory is /Users/chris
Checked login keychain
Checked password for ~/Library/Keychains/login.keychain
Checked settings for ~/Library/Keychains/login.keychain
Settings for ~/Library/Keychains/login.keychain may cause the keychain to be locked
Current values: lockOnSleep=no, autoLock=999999 mins
Settings corrected on ~/Library/Keychains/login.keychain
Checked default keychain
Checked contents of ~/Library/Keychains/login.keychain
Problems successfully repaired
Repair completed
Verification started
Checking keychain configuration for Chris Searle (user ID=501)
Home directory is /Users/chris
Checked login keychain
Checked password for ~/Library/Keychains/login.keychain
Checked settings for ~/Library/Keychains/login.keychain
Settings for ~/Library/Keychains/login.keychain may cause the keychain to be locked
Current values: lockOnSleep=no, autoLock=never
Checked default keychain
Checked contents of ~/Library/Keychains/login.keychain
Verification completed

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