sorry, I edited the post after you responded I'm guessing --- any idea about the space issue?
I have a related problem. I used my normal iTunes id for iCloud. But now I want to change it to an @me address to keep iCloud data separate from the wife and kids.
So I was fooling around with iCloud and turned on syncing notes. It wanted an @me address to do so. So I figured it was the perfect time to create it. I went ahead and got the email address I wanted, then it was done. It never let me choose a password. Now I'm stuck with the @me address I want and no way to access it since it never had me pick a password.
Any clues what to do at this point?
i'm curious to see what the upgrade process is going to be like since the backup is now in the cloud, but all the music still resides on my computer.