Bizarre OS 3.0 Issue, says my iTunes account doesn't exist

Okay, I'm a bit frustrated right now. See, I updated to OS 3.0 on my first-generation iPod Touch earlier today, and since then, I haven't been able to purchase a single thing on the Wi-Fi store without plugging the pod into my computer. Some of the things it's spat back at me include:
(When trying to buy an app, and I've entered the proper password) - Invalid password message, followed up by change password link via iForgot after a few tries.
(When trying to change my iTunes password through the iForgot service) - "The ID for the iTunes account you provided is invalid"
Among other things if I log out of iTunes on my Touch, I'm unable to log back in for the same reason of "invalid password", until I plug the device back in, and it works swimmingly until I unplug it again.
Now to avoid misconceptions, all the computers I own are authorized to play my music and sync with my Touch, and my iTunes account works on all of them too with absolutely no issues, and yes, I've tried Apple's bog-standard "Restart, Reboot, Restore, Reinstall, ect, ect..." method and still nothing has been fixed. I've reinstalled iTunes on all my computers, rebooted them all numerous times, rebooted the Touch countless times, wiped all settings, then all media, then restored, and even tried just setting it up as a new device and STILL nothing.
I'm at the end of my rope here, I've been trying and trying and trying almost all afternoon just to get it to start working as it should once more, but it just doesn't seem to want to. Any suggestions aside from what I've already tried as well as the usual "buy a new one" or "make a new iTunes account" responses would be greatly appreciated. I just want my mobile workstation back on its feet, with ALL its features...
And just to repeat myself, iTunes rejects my information ONLY from my iPod, and ONLY when it's not plugged into one of my computers.

Hey dude you might as well come in to this thread:
http://discussions.apple.com/thread.jspa?messageID=9655793
no solution has been found yet but we're working on attracting attention or maybe finding a fix
a little info is better than none.

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