IPhone backup corrupt, how do I get all my apps back?

Question

I used iTunes to upgrade my 3Gs from 4.0 to 4.01 today. As usual, iTunes made a backup first of my iPhone. The backup time was at 4:25pm.
After the OS upgrade, iTunes attempted to restore my previous backup but then came up with a message like this:
itunes could not restore the iphone because the backup session failed
So my iPhone is at version 4.01 and its like a clean install with only default apps and all my settings are gone. Great.
In iTunes I CAN see all of my apps in there. So I sync'ed my iPhone. First of all, this DELETED the backup I did at 4:25pm and replaced with a backup of my current setup (default apps, no settings). Fantastic. Now all my settings are gone for good. And the sync did NOT move my apps from iTunes onto my phone.
So how do I get all my apps back onto my phone? They are clearly in iTunes. They all are listed as having me purchased them. Isn't there a way to Sync them to my phone? Sync'ing doesn't do it.
And on my iPhone if I go into the App store and look at a app I've already purchased, it tries to get my to buy it again, even though I've already paid for it.
HELP PLEASE. Stupid iTunes is a piece of garbage.

Answer 1

So how do I get all my apps back onto my phone?
Select the iPhone in iTunes.
Click the Apps tab across the top.
Tick the Apps you want onto the iPhone then right click the iPhone name - Sync device.\
And on my iPhone if I go into the App store and look at a app I've already purchased, it tries to get my to buy it again, even though I've already paid for it.
If you have already purchased it, when you click Buy, it will tell you that you have purchased it and ask if you want to download it again for free.
I suggest you quit using it and save yourself all the aggravation of using garbage.