After a 2+ hour download and install of 10.7.2, I was presented with a signon/signup for iCloud. when I tried to use my existing AppleID it gave me an error and froze. I mean FROZE! I could not quit Preferences. I could not Restart. I could not Shutdown. Opened a case with AppleCare for the morning. Well, I am really pi**ed now. When all else fails - pull the plug..... which I did. I pulled the power plug and waited till the disk and fans stopped spinning. I plugged it back in. When the system came back up I noticed a request to Add Credentials from my service provider to a Keychain. I remember this from the original boot. At that time I answered with 'Allow'. Just for Jollies, I answered 'Deny'. I go into Preferences and select iCloud. I get the same signon/signup screen. I put the same info in. But this time it takes my ID and I go to the iCloud manager. Problem 'Worked Around'. Apple does have a problem 'somewhere'. It may be in the request for credentials. So, when you upgrade to 10.7.2 and get the prompt for credentials, Deny IT.