Please see the most recent updates in the "Where did the .com name go?" thread. Posts number 16 and 17.
While it might be true that you need an alternate address to create a gmail account, you don't lose your gmail if you close the other account.
I ran into this same problem when I was between providers. I tried to re-register because I had lost my login info (couldn't remember it), that's when I found out that gmail is no good here.