AppleID without Credit Card does not work in Australia?!

I have tried to do this multiple times in Australia, and it keeps asking me for a credit card!

My brother and I each got an iPod touch for christmas, and we cant use them!!

This method DOES NOT WORK in Australia!!!!!

My dad has tried on the Device, on my brother's device, and on iTunes on Windows 7. All failed the same way - requiring a credit card.