Apple has among the strictest rules that are geared to preventing fraud but mostly to protect their US market. Although any nationality can have an iTunes accounts, the US iTunes version is where really everyone wants to download from since it has much more to offer, especially movies and the iBooks for the iPad. If you have tried to set up a US iTunes account you probably gave up pretty fast. It accepts US billing addresses only and only US billing addresses. Here is the solution: the US Unlocked Card. This is a virtual pre-paid Discover**debit card with US billing address. The card costs $15 to create. As soon as you have loaded the card with the desired amount you can start making online payments with it. For iTunes, however, we have found out that the balance on the card has to be at least $51 for the card to be accepted during the account set up. The use of an IP shield is crucial!

Step by step instruction:
1) Sign up with US Unlocked, if you haven't already
2) Apply for the US Unlocked Card by paying $15
3) Make your first card load payment of $51
4) Once the funds have cleared your card is assigned and you can register the card to the iTunes account:
A word of advice: Be VERY careful
of your available balance. If your balance goes below the purchase amount (i.e.
you have $10 in your account and you want a $9.99 album but forgot to account
for the $.50 fee) the purchase will be declined. Normally this isn’t an
issue, but Apple iTunes will continue to charge your account repeatedly
(sometimes 6-8+ times) costing you $.75 decline fees every time.
When iTunes says 'please, enter valid security code', it means that they are not accepting the card. Check the following:
* card load payments can be made after ID verification status is accepted. To get the accepted ID verification status upload a recent bill or statement showing a matching address and a scan of a government issued ID.
** The US Unlocked Card is now a MasterCard (Discover Card program was terminated in the summer of 2011)