While I haven't had a chance to confirm it, it appears Apple throttles the number of Apple ID's that can be created from a single IP/Range. This doesn't appear to be that big of a deal except when trying to create a ton of them for a group of users getting issued iPhones as I was just trying to do.
More to come but the way I've confirmed this is by creating about 20-30 apple ID's on a single OS X Laptop with iTunes by purchasing a free app as outlined in Apple's KB. Shortly after the 30th or so Apple ID creation, I got the above message in iTunes. I did the same thing on my home computer via RDP to it and same results, this time after about 5 or so. So it seems there's some dynamic throttling of account creation and there's no KB article about it to be found. Shame on you Apple!
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