I had an issue where my data could not be migrated from MobileMe to iCloud UNTIL iCloud was set up on my iPhone. This makes things harder for people who have subscriptions but are on older phones like the original or 3G, and want to upgrade to the new model; they would have to wait until Friday or even later.
so sad....
Make sure you plug your device into iTunes and check "Allow Wireless iTunes Syncing" in the info area, bottom of the Summary page.
Hmm that was in fact unchecked but after I checked it, it still does not work
Yep. Add me to the list of those who are suddenly having their password rejected. Two accounts, both getting the shaft.