This account is currently blocked and not recognized as a valid account . when using instances.

Hi.This error typically occures when you launch instance at first time at specified region. After verification process ended, AWS will inform you that you can launch instance at that region(Usually, it will be end in several hours).If it continues, contact aws-verification@amazon.com.

Your account may be limited to use certain regions. Which ones did you try? Try creating an instance in us-east-1 (N. Virginia). You can contact aws-verification@amazon.com for assistance with verification.