I purchased an application, then updated my phone and it is wanting me to pay for it again. Any fix?

It was an in app purchase (Instafollow was free, but I paid for the full version via in-app)

Sounds like you are trying to download the paid version from the Store, instead of the FREE version.
Download the original here:
Downloading past purchases from the App Store, iBookstore, and iTunes Store
          http://support.apple.com/kb/HT2519

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