Itunes phone ownership issues

Bought myself new iphone4 gave iphone3 to wife,succesfully set up new 4 but cannot get itunes to recognize wife as new owner. Old phone still showed pho. in my name, have set up new itunes account for wife but itunes still uses my backup and tried to buy her an app. and although it downloaded on her phone went to my account info.and credit card. We do not have a family plan each has own plan however receive one bill with my pho. as primary.How do I get her totally on the old phone?

Restore the 3G with iTunes as a new iPhone or not from the iPhone's backup. You can change the name of the iPhone when connected to iTunes. After selecting the iPhone under Devices in the iTunes source list, click on the iPhone to highlight the name to change the name to whatever you want - no different from changing the name of an iTunes playlist, or changing the name of a folder or file name on your computer.
Before syncing the iPhone with iTunes, iTunes needs to be logged in to your wife's iTunes account. There is no need to have separate iTunes accounts. There is no limit for the number of iPods and/or iPhones that can be synced with the same iTunes library and iTunes account on the same computer and each device can have its own sync preferences with iTunes.
Message was edited by: Allan Sampson

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