A related problem I've seen answered elsewhere: developers don't realize they must set SOME price, even $0.00. It's not enough to just set the "App Distribution Methods" to Public.
StarArcher
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It looks like that was my problem too. I set the price of my app to $0.00 and it's doing better. It's still not perfect: when I click the link in the email Apple sent ("The status of your (iOS) app is now "Ready for Sale") from my test iPhone, I still get the "currently not available in your country or region" error message. But if I go to my developer page in the store, I can see the app.
Thank you for your help!
I'm having the same problem. Already set to public but not available. Did you get a resolution?