i,ve spent 2 days on this, doin me head in, and not a fan of ios5 at this point in time. What i have discoverd is that the itunes ID works on all things ipod touch 3g, ipod touch 4g, and iphone4 to download and sync some items. for photostream and notes+email to work you have to use a new me.com email address (even though I have a paid for me.com email address, it does not give an option to sign in using that email address.
I have also dicovered that everything needs to identical for actual syncing. Even then notes don,t sync and email syncs on 2 items but not the others. so now I have what apple call a synced, ipod touch 3g, ipod touch 4g, iphone4, Appe tv, and Mac all syncng with different bits of info on each one. No 2 of them have the exact same info. Mobile me disk space is impossible to access after icloud update, so I don,t know why I am paying for 20gbs of cloud space that I can,t use.
I,m giving up on it at this stage, have searched through millions of forums and other websites etc, and now am completely disgusted with the ios5 operating system. Any good that it may have brought has now been diminished to anabsolute distust of it all and I may never try to resolve it, as I don,t think any update should need this level of customer interaction to get it to work. Microsoft stopped that kind of attitude 3 or 4 upgrades ago. It appears that apples need to have a media event is more important than its cstomers accessing what is in my opinion a BETA release of IOS5 software.
What really irks me is the fact that, as a paid up customer of mobile me, I started to lose bits of info unless I upgraded all the devices at the same time to eventually access Icloud, and then when I do it, I spend days trying to get them all to function together. If I had not had the mobile me account I woud not have needed to upgrade all the devices at the same time.
For the record some of these are purely toys, but the phone and ipod 4g were actually accessing work related information, and now they don,t. Really really annoying.
Incidentally I could not use the paid for mobile me email address and had to create new mobile me email addresses, which I now have cluttering up my email accounts, amd btw it seems the devices are using these email addresses for syncing hence the different information on each one.