ITunes says 1 app store update but can't install, iPhone says no updates

Hi there in iTunes 7.7, Applications under Library, when I click Check for Updates it says "Updates are available..." So I click View Updates and then it says "No updates are available. Check again Later." If I go back into Applications in the Library in the bottom right it says there is 1 update available but when I click it it says no updates.
On the App Store on the iPhone itself it says there are no updates. I'm also having a problem where apps downloaded on the iPhone need to be synced with iTunes a few times before they will copy over properly into iTunes. Any ideas?

I did a restore, and chose not to restore from the backup. This seemed to have fixed updating apps on the phone but not in iTunes.

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