Well, after an hour and half with both ATT and Apple, this is still not working! The Apple rep was great, we tried everything under the sun, conferenced in to ATT - they reset the provision, still no go.
I found one other discussion on a related topic where the fix was to reset the VM password, but I tried this three times. One other funny thing, upon the password reset I never go the confirming text message.
They did say there were data issues in Michigan which may be a cause. I'm going to try a restore see if that does anything.
I can't believe this problem is new! Any other suggestions?