Itunes says it is syncing apps but it won't transfer purchases nor sync any apps from the computer after upgrading to iOS 5.

I just upgraded to iOS 5 and itunes synced my music fine. When I tried to sync the apps (they were all selected), it said that there were 5 steps, which included "Preparing for sync" and "Preparing apps to be synced". However, the sync was over in about a minute, no apps were transferred, and when I went to check the apps tab on the iPod, all of the apps were selected (which usually equalled over 1GB), yet it said that the apps were only worth 0.04 GB. I tried unchecking one of the apps and it immediately shot up to 1.04 GB! Thinking it may have been a computer problem, I tried to sync with a different computer, but I had to transfer purchases first. Again the same thing happened: it claimed to be syncing but nothing really happened. I don't know whether it's a problem with Itunes 10.5 (although I haven't heard of anyone with this issue) or my iPod. Help would be appreciated.
Note: I'm using an iPod Touch 4th g and my computers are running windows xp and 7, respectively.

So just got off the phone with a senior Apple support person and here is the fix they gave me for the app issue.  Not sure if it will work until I get home to try it.  It appears that a lot of these issues are in relation to Apple's move from a generic Apple ID not attached to a specific email to an actual email address.  Since my .mac or .me email was never verified with my original Apple ID (just my name) the iCloud was not recognizing that I actually had any apps associated with my account when signing in with the new .mac email that was connected to the iCloud.  The below fix she stated would separate the iCloud and iTunes allowing the iCloud to handle all of my mail, contacts, calendars etc. and iTunes/store to handle the apps and purchases.  I will update again if this takes care of the issue.
Go to applied.apple.com
-       sign on with existing Apple ID (not an email address)
-       add an email to your account and verify it
-       edit your Apple ID to the new verified email address
On iTunes
Step #1
-          iTunes store
-          click on Apple ID in the upper right corner
-          click edit
-          edit Apple ID to new verified email address associated to account
Step #2
-          synch device with cord
-          click on device
-          go to the App tab
-          deselect synch apps
-          apply
-          synch
-          go to the App tab
-          select synch apps
-          apply
Step #3
-          on device go to store and enter the new verified email address as ID and password under store
You probably will have to do this to all devices that are synching with your iTunes account

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