Its actually the phone that it picks up is not American from your Itunes account. Same happened for me. As far as solving the reading light problem you could look into a M-edge cover where they have a light that fits neatly in the cover
www.buymedge.com. They deliver to Australia but with a huge shipping cost of over $30 US but I think its worth it to have a nice neat "package". You could also try and get some other Aussie's together and do a bulk order.
Natalie