Password is not working but JUST for app purchase permission. Anyone else having this problem?

Anyone else having this problem? I keep entering my password and instead of telling me i've entered the wrong password, it just prompts me again. Password is working elsewhere (obviously - I got onto this forum) and I have tried rebooting the phone. Thoughts?

Try This...
Close All Open Apps... Sign Out of your Account... Perform a Reset... Try again...
Reset  ( No Data will be Lost )
Press and hold the Sleep/Wake button and the Home button at the same time for at least ten seconds, until the Apple logo appears. Release the Buttons.
http://support.apple.com/kb/ht1430
If the issue persists...
Connect to iTunes on the computer you usually Sync with and Restore
http://support.apple.com/kb/HT1414
Make sure you have the Latest Version of iTunes (v11) Installed on your computer
iTunes free download from www.itunes.com/download

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