How do I transfer free apps to a new user

I have a new iPhone 4; gave the 3Gs to my wife.
Connected the 3Gs to her iMac and chose NOT to reset or restore it.
# Renamed the phone.
# Dumped all paid apps from the phone, leaving only the free ones.
# All my old Apps stayed on the phone but my folders got all screwed up and I had to fix them.
# Logged on to the ITunes Store, set up an account for my wife.
# Got the confirmation email from Apple and logged in with that account.
# Wiped my email accounts from the phone and added my wives and tried them out. All OK.
# Replace the music with the music on her iMac.
# Replaced the contents of the Address book with the content from hers.
# Replaced the bookmarks for Safari with her bookmarks.
# Went to the phone to Settings > Store and logged her into the Store via the cellphone.
It's all great.... except:
One remaining problem: When the App Store App shows two free Apps to be updated (Around Me and Speedtest), when I click on Update All, the iTunes Password box opens and the username it is associated with is the one associated with my iTunes account, not her new one. Inputting the password for her account will of course not work.
I have tried everything and can see no way to get my username disassociated from the ITunes account on what is now her phone and get her username associated with it.
Does anyone have the answer to this one???
Many, many thanks if you do. If I have to rest the whole phone, it will take me days to reconstitute it to the point it was at when I got my iPone 4.
Say it isn't so, Sam.

You cannot transfer an app's registration to another iTunes Store account, so those copies of those apps will always be associated with your iTunes Store account. Your wife will need to enter in your iTunes Store account ID and password to be able to update any apps acquired (whether free or purchase) via your iTunes Store account.
The alternative is for her to download those same apps using her own iTunes Store account. If they're still free, there should be no problem. Then she can remove your copies from the iPhone and sync the copies purchased via her iTunes Store account.
Regards.
Message was edited by: Dave Sawyer

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