Can't download from App Store

Running on an XP laptop. Latest version of iTunes (7.7). Authorized computer, synced my iPhone, downloaded the latest iPhone firmware. Setup an iTunes account and all that.
However, when I go to the app store and try to download an app (even a free one) it says, "Your account is only valid for purchases in the US iTunes store."
The thing is, I'm in the US. And yes, my iTunes (while I'm logged in or logged out) is set to the US store. I even switched it to a different store, then went back to US, then re-synced and restarted my phone, etc. No luck.
In fact, I was able to download an app just fine through iTunes on my laptop. I got a free game, then synced it to my iPhone. Now that game is on my phone. Yet still, I can't download from the App Store on my phone.
What's the deal??

I had this problem with the iTunes Store and what I had to do was go on iTunes on my computer and log in with my account and then synced my device. It seems to sound like the problem might be with your device. You can try resetting and syncing it with your computer. Good luck!

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