Q: Unable to sign on to iCloud on iphone 5

Unable to sign on to iCloud on iphone 5  iOS6.01

I am able to download apps with my newly created account but not able to setup iCloud.

Error message on iPhone:

"Verify Your Account

This Apple ID's email address cannot be verified.  Changeyour Apple ID's email address at appleid.apple.com to sign in to iCloud."  (I've already done this)