I just updated my iPad 2 to iOS 5. At the step for setting up iCloud, I said no to iCloud. My iPad appears to be stuck at this step, displaying "setting up iCloud" for over an hour. The only recourse appears to be to start over, which suggests that the iPad will be erased. What can I do about this? Thank you.
My iPod Touch was stuck on this screen. I powered off and on and it unstuck.
Restart the iPhone and redo the iCloud steps.
Down the bottom of the page try clicking "Skip this Step".
Also works if you don't want to set up a new Apple ID..