Valid Apple ID, cannot open iTunes account, Apple blames server

I have yet to use my Apple ID on iTunes or the Mac App store.  Everytime I do, it tells me that because I have yet to use it, it needs to verify the account.  All the information comes up as expected, I enter my credit card info, and then I get a message saying "Your request is temporarily unable to be processed.  Please try again later."  It's been saying this since December 30th.  please help!!
After having an iChat, a long telephone call and an appointment in store with a Genius, everyone assures me the only way to get resolution is through e-mail with iTunes support.
My assigned guy keeps telling me that this is a server issue, refuses to give me information on how to speak to anyone else higher up the command chain, and really sounds like he might cry at any time, because my problem is so not his fault.  I keep assuring him that I know it isn't his personal fault, and that he is doing all he can do, but, really, its been quite some time, I can't use my phone in the way it was designed, and I'd just like to speak to someone else about resolving the issue.
Any ideas?  Does the broken server sound like a reasonable explanation?  How long does Apple take to fix a server?  I'm finding this to be a pretty bizarre issue.  My iCloud access continues unabated, with my e-mail working fine.  It's just using the ID to purchase apps that is the problem.

Tap on your id in Settings > iTunes & App Store and tap 'sign out' on the popup and then sign back in with the updated version of your account

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