When I went online, I found many people had similar problems. Here's one such video I found:
I even tried pressing the dialer and pressing *228. No such luck.
The solution: call Verizon at 1-800-922-0204. I found the lady at the call center over-the-top helpful and she got my phone activated without problems. Oh, by the way, you'll have to call from another phone into of your new Droid. She'll more than likely ask you to power it down and then back up--and I'm not really sure how you can do that while talking to her. So, bottom line, call from a land line or another cell phone.
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