I am on the phone with apple right now. They are telling me that this problem is on AOL's end. The customer support person I am talking to said that AOL hasn't resolved the issue so they are converting AOL accounts to Apple accounts for people. She put me on hold and is doing the process for me right now.
EDIT:
I just got off the phone and they successfully converted my AOL account to an Apple ID. They gave me a temp password and now I don't log into AOL. I use the newly created apple account with all my purchases and stuff with it.
Naturally, same problem here.
I'm going to give them a call to have the same done. I've had way too many problems with my AOL ID.
I guess it's true. Apple things do just work. Hm.