Another iphone 4 update failure story

I have found so many other posts where people are having the same issue and none of the suggestions has worked or made any difference.
Just thought I'd add my two pennies worth...
First of all my phone has version 4.2.1 OS. (GSM)
I had the phone activated at a Apple reseller as Carphone whorehouse didn't do it when I purchased the phone, and I couldn't install the drivers
initially on my pc as I have a useless Dell laptop with various issues.
So after managing to do several Windows updates my pc now recognises the phone - I de-authorised all pc's and re-authorised this one as it's my main pc.
However, all the apps I have installed on the phone were downloaded directly to the phone via the I-store. This seems to confuse the i-tunes software as I cannot transfer them from the phone to i-tunes.
If I try to sync I get the all too familiar permissioning error "you are not authorised for them on this computer"! This has also meant that I now cannot use the apps on the phone as the sync seems to have blocked them - thanks Apple!
The only apps I can get to work are the ones I manually have to find again through the useless search option in i-tunes and re-download.
Some of which aren't free any more so I can't get them re-installed unless I pay for them - brilliant!
I have tried the 'fix' to remove the user account control, which I didn't think would make a difference and I was right.
De-authorising and re-authorising makes no difference, neither does downloading another free app.
I have tried to update the operating system to IOS5 but that fails to download, so I downloaded the stupid software package and when I run that it just opens up i-tunes and attempts to download the software again!
Not many options left, I will try a couple of other things, but not really feeling very optimistic...

just because it says buy, if you already bought it it will come up with a bubble saying, already purchased..hit ok to download.  and as far as syncing to itunes...syncing does not download the apps from phone to itunes, you have to go to the store tab at top of itunes and go to "sign in" then go to file tab and click "transfer purchases from XXXXX (will be a name here) phone", then and only then will your apps appear on the apps tab under your phone listing.
I found this out the hard way also.
Not sure on your IOS 5 update issues, i guess i am just lucky to have had zero issues other than my own mistakes with apps.  2 for 2 upgraded, zero issues.
hope this helps in some way or another.

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