Q: Setting up iCloud Mail

No.

You'll need to create a new account or "move" a .me account that is currently active.

According to Apple's documentation you can revive an expired email address:

'Inactive or expired MobileMe accounts

Inactive and expired MobileMe accounts do not need to move to iCloud. Simply use your inactive or expired account to sign up for an iCloud account and follow the onscreen instructions. See this article for more information.'

'This article' doesn't seem to help... I don't know how this works, though I assume you would need to know the password for the expired account.