I accidentally bumped that older thread about the Lumia 521 when I meant to post my question here. Looks like the issue is resolved. I was trying to use my new Lumia 521 without a SIM card (that works with Android). But it seems like anything that requires my Microsoft account won't work without the SIM in, even though WIFI is connected.
Crono suggested I just put in the SIM that came with it (or at least that is what he did). I don't want to activate the SIM, but hopefully just being in the phone won't mean anything. I already have a T-Mobile SIM in my Nexus 4 and I'm going to keep it there. This phone is just for playing around with and seeing with WP8 is like. It's working better now with the SIM in.
This is a pretty nice phone for $130 and even nicer for $99 I paid (I didn't see that $20 coupon until after I ordered, it could have been even nicer). Really impressed with the extras HSN tossed in. The TPU case, the headset, and car charger.
I'm pretty impressed for the screen for 800x480. And I don't think 800x480 is even that bad on a 4 inch screen (though 223 DPI sure is noticeably lower than the 315 DPI on my Nexus 4). And it definitely is a nice solid feeling phone and I like the white body.
And it's pretty said the Lumia 521 has a better sounding and louder speaker than my Nexus 4. This phone sounds nice.