Sounds like you're stuck at activating FaceTime. I found an article that is helpful with that issue:
iOS: Troubleshooting FaceTime and iMessage activation
More specifically, the following steps under "Troubleshooting Apple ID activation" are pertinent:
After each step, toggle iMessage and FaceTime off and then on again in Settings > Messages and Settings > FaceTime.
- Update to the latest version of iOS.
- Ensure that you have an active Internet connection. You can complete activation using Wi-Fi or a cellular data connection. Check your Wi-Fi network using standard Wi-Fi network troubleshooting.
- If you receive an error when signing in to your Apple ID, visit myinfo.apple.com, sign in to your account, and ensure that the primary email address has been verified.
- Ensure that FaceTime has not been restricted: Settings > General > Restrictions > FaceTime.
- In Settings > General > Date & Time, ensure that Set Automatically is on. If Set Automatically is on, but the incorrect time zone is displayed, turn Set Automatically off and then choose the correct time zone, date, and time. Then turn Set Automatically on again.
- Enable iMessage and FaceTime while connected to another Wi-Fi network in a different location.
When enabling FaceTime or iMessage on an iPhone, you may see "Waiting for Activation". This message refers to the activation of your telephone number only. You can use FaceTime and iMessage with your Apple ID even if your phone number has not completed activation.You can see that you've activated FaceTime and iMessage with your Apple ID here:
- Settings > FaceTime > You can be reached by FaceTime at:
- Settings > Messages > Send & Receive > You can be reached by iMessage at:
I remember when I went through the Facetime setup about a year ago, I got the same message (could not verify email address) However, when I checked my e-mail in box, the verification e-mail was there, so I responded to the link included in the e-mail, to verify it. There is an off hand chance that the same thing happened to you.