Fixed it!! I checked and investigated and I made a new Apple ID using my same email address as my existing Apple ID. My existing ID is an old school one so uses a username rather then email address to access iTunes, App Store etc.
My email address I have been using is already verified under my existing account so it was getting all confused. I just removed all my details from the new account, freeing up my email address, went into my existing account and changed my Apple ID from the username to the email address and bang, iCloud setup and working!
I only really want it for my phone as my computer has too much on it for the 5GB space you get!! And my emails all imap anyway.