Ok final solution :
Your hosts file
/etc/hosts
or
/private/etc/hosts
(both of which are the same file - the 2nd being a symbolic link to the 1st)
should contain ONLY this, and then facetime will activate and connect.
##
# Host Database
#
# localhost is used to configure the loopback interface
# when the system is booting. Do not change this entry.
##
127.0.0.1 localhost
255.255.255.255 broadcasthost
::1 localhost
fe80::1%lo0 localhost
If your /etc/hosts file contains ANYTHING ELSE, then make a copy of it, and save it on the Desktop.
Now remove ALL extra entries from /etc/hosts so that it contains only the lines listed above and save.
If you want to flush the DNS cache, open terminal and run the following command:
dscacheutil -flushcache
Restart, if you want to make double sure that all changes have been applied.
Open facetime, and supply your Apple ID and password.
Facetime will activate and connect.
Now you can swap back to your old /etc/hosts file which you saved on the desktop.
Tim x