Iphone keeps asking me for my AppleID password

My iPhone keeps asking me for my AppleID password. 
This usually happens after I wake the phone and/or start any app.  The problem is intermittent (and too consistant that it has become very annoying!)
This started happening about 1.5 weeks ago.
I called into Apple support and they don't have any idea of how to fix it other than me backing up my phone and performing a brand new restore.  I haven't done that yet as it seems to be a brute force approach (and lengthy timewise at that). 
From what I can remember, I purchased a song from my iPhone using the iTunes store.  Ever since then, it has started asking me for my password for my AppleID.  If I enter the password and click OK, everything is fine, but after a few moments, it will ask me for my password again.  Also, if I hit Cancel, everything is fine, and again, it will ask me for my AppleID password. 
I have the lastest build/version of iOS 5.0.1 installed.  The password entered IS correct.  I am able to purchase music/movies/tv shows from my AppleTV with the same AppleID and password.  I have verified on my iPhone under settings, Itunes that my AppleID is correct as well.
Anybody else getting this and/or have a solution?

Could be a few things...Some things to check:
-Do you have pending downloads in the itunes store? Go to ITunes Store > More > Downloads
-Are you signed into the correct Apple ID in the store? Go to Settings > Store and check the Apple ID. It may be a good idea to just sign out (by tapping on the apple ID and choosing sign out) and sign back in even if you are.
-Other things that use your Apple ID that you might check: App Store, Facetime, iMessage, iCould, Game Center

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