How I get rid of video download iPhone 3G

I have a 3G iphone which is new and after setting it all up (including the 3.0 software) I thought I would rent a video to test. In the More icon at the bottom right of I-Tunes (on the iphone) there is a red circle with 1 in it. When I click on it there is the film I am trying to download but the status is processing and however long I leave it it does not finish/change (wifi or on 3G).
I clicked another download hoping to help it along... (I know I know) and now that is queued behind. I cannot seem to stop it, delete it or do anything with it. In addition, if I go to the configure page where the background is black and the icons are grey/white colour nothing seems to happen.
HELP !!!!!!!!!
Macbook Mac OS X (10.5.7)