Ok.. I now feel silly since I just got it to work. But after 24 hours of frustration, here is what I did, and what finally worked:
Summary - this fix relies on a bug in the Google Chrome browser and Verified by Visa interaction, so if/when that is fixed, this will no longer work. Basically all it does is fake your way past the Verified by Visa process.
Step 1) Purchase Walmart Money Card. Activate it online and take precise note of the exact address you enter. To be on the safe side I put my entire billing address (including "apt xxx") in "Address Line 1" since PS does not support "Address Line 2".
Step 2) Download Google Chrome.
Step 3) Make Google Chrome your default browser (video Step 4 will show you how if you don't know).
Step 4) Follow the instructions in this video: http://www.youtube.com/watch?v=0uRQ-j8cbrY
In case the video is taken down..
Step 4a) Go through Sign Up for PlayOnline process up to where it asks for payment information.
Step 4b) Enter credit card: 4315-6544-8512-9623 and security code: 568 (this is FAKE info, do not worry).
Step 4c) Enter your REAL expiration date from the Walmart Money Card.
Step 4d) Enter any billing address info you desire (it won't matter, you'll be changing it later). But remember the zip code you use, even if it is fake.
Step 4e) On the next screen, click the "Use Payer Authentication Service" button. It will open the verification service in Google Chrome (since you set that as your default browser).
Step 4f) Enter the REAL expiration date, and zip code of the billing address you just used in Step 4d. If this bypass works, at this point you will jump ahead to the "verification complete" page, rather than being asked to enter your "Verified by Visa" password. If you're asked for a "Verified by Visa" password, this trick may no longer work.
Step 4g) Return to PO sign up. Continue through the sign up process till you get the UCS-60257 error (because you entered a fake credit card, of course it failed).
Step 4h) Click "Back".
Step 4i) Click "Back" again (to edit payment info), or if you're creating a new account, select "Payment Info" in the "Change" dropdown.
Step 4j) Now enter your correct Walmart Gift Card information. If you are signing up for a brand new account (not reactivating an old one), it will ask you for the "Verified by Visa" process again, and this time go through it will the real card info. It should still skip past the "Verified by Visa" password page the second time you open it up in your browser.
Step 4k) Finish sign up. Cross your finger for no errors!
Step 5) Rejoice!
Note: This MAY work without entering the fake credit card info first. All I know is I followed the video, and it worked, so I'm not going to question it. But feel free to try shorter variations of this. I suspect "Google Chrome" is the critical factor. :)
Other factors:
Yes, I did use the "temporary" Walmart Money Card you get in the store; the permanent card will come in the mail in a few days, but the temporary one should work just fine. I did give it about an hour to activate (Walmart automated customer service call center didn't recognize the # for the first 30 minutes, so I don't know if that is just a customer service delay, or if the card actually was not activated till then, but it's a good way to check if you're in the system).
About Walmart Money Cards - there is a $3/month fee for the card, so this is essentially upping the cost of the FFXI subscription. Also, there's an additional $3 fee each time you add money to the card, so I recommend adding a few months' worth at a time (you can always use it for other things). Minimum amount to put on the card is $20.
Hope this helps someone! I'm off to make my first character! :)
