Cannot complete setting up IOS6, keep getting "The request timed out" on iPod 5

After updated my iPod 5 to iOS6 via iTunes, my iPod stated Update Completed. Then iPod said there were a few more steps to follow, so I clicked Continue. Next iPod asked for Apple ID Signin. I typed my password (which I am certain is the right password) and after a few minutes I get a pop up message "Could not sign in. The request timed out". I have tried many times with same result. I have also tried powering off iPod and trying again, with same result.

Does anyone have any advice on this?