Cannot make in-app purchases or retrieve purchased in-game content

HELP!! Before anything else, this problem started immediately after the big iTunes update a few weeks ago. I have 32gb/3rd gen ipod Touch and it should not be experiencing these problems. I have latest software, also have in-app purchases turned on in settings on Touch.
There are only two games I play regularly that have the in-app purchase feature. One is We Rule & other is DragonVale. I can click on the area where purchases can be made, but when I attempt to do so, it freezes the screen and I have to reboot iTouch. I've even had to un- and re- install both games NUMEROUS times. When I go back in, I can still play the game (collecting coins, harvesting crops or feeding/breeding dragons), but cannot make in-app purchase. I got a new game called Twisted Lands which has an in-game unlock feature (costs $) and I can't even unlock that game. Also, in We Rule, there is content that was purchased with cash (and not the game's version of cash, which is called mojo....you purchase mojo and then are able to rush crop production, purchase specific content, etc). Some of the content that was a cash only transaction is now unavailable to me due to this problem. For example, I have crowded realms in We Rule and did re-decorating. As such, I have to place certain items in the game's inventory....some items which were paid for as a direct cash (via iTunes of course) purchase. Because of the in-app problem, I cannot retrieve or access my own previously purchased content that sits in frozen game limbo (the item will show as loading but of course it never does).
I've written to both game developers, ngmoco (for We Rule) and backflip studios (for DragonVale). Both were extremely courteous and both feel positive the problem is on iTunes' end and not theirs. I also wrote to iTunes/Apple Support and they have been unable to provide a solution. Their latest email to me was to come to this forum and post this problem. I was so frustrated the other day that I uninstalled both games, turned features off and then back on, restored iTouch to original settings and then reinstalled both games....did not help.
I also thought about uninstalling iTunes on my computer and reinstalling it but have never done so and a little worried about doing that. I honestly don't know where else to turn or what to do about this problem. Anyone that can provide advice or assistance would truly be helpful. Thanks in advance!!
ellylons

HI...
Since you already purchased the app, make sure subscriptions is turned on > iTunes Store: Purchasing and managing auto-renewing subscriptions
iTunes Store: About In-App Purchases

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