Cannot log into iTunes on iPhone

I just tried restoring it to factory settings and that didnt help at all. Still unable to download applications, updates, or music.
MacBook MB063LL/B Windows XP

I called apple and this is how they got it working (for now).
Connected my iPhone to my computer
Purchased a free application from iTunes that I did not have on my computer
Syncd my iPhone and computer through iTunes so that the free application on my computer would transfer to my iPhone
Purchased a couple more free applications on my iPhone with the it disconnected from my computer
I was on hold for awhile during the process, but in the end the guy said it was because the permissions needed to be transfered back to my iPhone? I believe that is what he said. I asked him why this happens to AOL/AIM users and he didnt have an answer for me.
Hope that helps anyone else with the problem.
If you have the problem and my solution didnt help, Id try contacting apple and having them call YOU. Haha, they called within seconds of me entering my ticket through:
http://www.apple.com/support/expert/
MacBook MB063LL/B Windows XP

Your tricked worked for a while and it broke again. Anybody know if Apple had classified this as an official bug? Very frustrating. If they are going to not let us use our AOL ids anymore that is fine, but they need to have a migration tool for all your past purchases.
iPhone 3G iPhone OS 3.0

Yeah, it did solve it for me for maybe an hour or so, but the problem keeps coming back and its really frustrating.
MacBook MB063LL/B Windows XP

Started happening again.... The fix only works for a short time.