As it appears not be be a general authentication issue it does seem as if Andrew hit the nail on the head....he does have this maddening habit of doing that.
"Next 5 days" sounds wonderful.....make sure you log all the time you have spent, calls ect, and the downtime you have had...Sky can sometimes be generous with the compensation with issues like this so go for it.
He did say that's the timeframe it has to be done within and usually it's a bit quicker than that. So hopefully it will be sorted soonish, although it does give me more of an excuse to finish unpacking so not all bad!
The guy did mention compensation - it's probably only been 3-4 hours of my time wasted although the first person I spoke to (at about 11pm on Thursday) did just say "oh it'll probably just start working soon as it's been activated today". I didn't push that then because it was late and I'd drunk most of a bottle of wine.