On this line i am getting an exception -
OAuthWebSecurity.CreateOrUpdateAccount(provider, providerUserId, model.UserName);
System.Web.Security
I was similarly looking for an explanation to this. I'm not sure I fully understand, but after experimentation, debugging, and watching intellitrace events, it seems CreateOrUpdateAccount is creating or updating an entry in the OAuthMembership table with just Provider, ProviderUserId, and UserId which is determined by querying [in my case] the UserProfile table based on this unique UserName. This way, if you call CreateOrUpdateAccount with a different provider and providerUserId, but the same username, then both provider sign ins are tied to the same user account in your app.
I had to add a UserProfile before I could create/update the corresponding OAuthMembership record. In the VS template, it looked something like this:
db.UserProfiles.Add(new UserProfile { UserName = model.UserName });
db.SaveChanges();
OAuthWebSecurity.CreateOrUpdateAccount(provider, providerUserId, model.UserName);