From searching it seems like this is a common problem, on the ps boards the people who finally get it working say the problem was with the address, I know I had the same problem when I added my card, its some new security feature sony put in place.
Be careful not to try it too many times, i guess it will lock you out for 24 hours after you try 10 times.
All the solutions i have found they just say input your card/billing info exactly as shown, even if they are caps, and you may not have to use the second line where its marked as address line #2 if your credit card has it all listed on one line.
The problem i had with mine was the damn ps keyboard kept putting a blank space after each of my entries, maybe thats what yours is doing for the address, so basically it just has to be EXACTLY as shown on your credit card, or its a no go.
Goodluck!
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