Edit: It works now. The solution for me was to - and this is so weird, I had to do this with my iPad too now I remember to activate Facetime - add 8.8.8.8,8.8.4.4 in the iPod DNS settings. Seriously, like that was obvious. WTF. Now I can add people.
Alright then, I'll try now. Hopefully this works because it's a cool feature if it takes off. I like the Newsstand thing too and the notification centre, even though it should have been there before but I guess it's there now.