To verify your site with Google Webmaster you need to use the  HTML Tag option under Alternate Methods. Do not use the Recommended Method as this will not work. It is also very important that you copy the correct portion of the tag in order to be successful. Copy only the letter/number string between the quotation marks, then click Site > Tracking > Google Webmaster. Paste the code into the designated field, and then click on the "x" in the top-right corner to save the change.