Currently Being ModeratedJun 1, 2013 11:59 PM (in response to abby55)
I don't know if you've solved this problem yet, but I had the same exact problem. I fixed it by disabling all of my restrictions. I didn't have the Facetime restriction on, but I did have just about all the other ones on (including camera), so maybe that's what affected it. Hope this helps!
Currently Being ModeratedAug 2, 2013 2:20 PM (in response to nicole9109)
My wife struggled to fix this issue on her new iPhone 4S for quite some time. Turns out it came with the Restrictions "disabled" and therefore greyed out but with FaceTime off. I enabled restrictions and had to apply a password. I was then able to turn on FaceTime before then turning off the restrictions again. It also requested me to put in her Apple ID. I must say Apple, this was a very frustrating and poor user experience.