Ipod touch won't allow purchases

My son's ipod touch will not allow him to make any song purchases eventhough there is plenty of money in our itunes account. Here are the symptoms.
First it was giving him a non-descript error - 1004 I believe. We hadn't synced it in awhile, so we synced it. It also was updated to the latest ios per the instructions. Now when he buys a song, it says it is going into download but then it just disappears without downloading. Luckly it doesn't deduct money from the account. I was able to successfully load an Uno game.
Any suggestions?

I checked and restrictions are off so this is not the problem. I logged out of itunes and restarted my computer. I also reset all the ipod settings just in case. This did not solve the problem. I also noticed that when we go to update an app, it will show that the app is waiting for update, but it never updates. It just evenually goes back to the normal icon without updating.

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