Phantom Usage - iPhone Auto Update of Apps - How to turn off?

Since upgrading to 2.2 the "Usage" of my phone has gone way up. Example, my phone since last charge has been on for 2 day 17 hours 15 minutes. My call time has been 35 minutes, however my usage time has been 2 hours 55 minutes. I talked to Apple and they have had reports on "Phantom" usage. That is Apps and system software not shutting down. All the rep could do was to make me an appointment with the Apple Store 3 hours away.
Under setting's I have about 10 Apps that are in the "AutoUpdate Settings List". I think this could be the problem. How the heck do I turn this Auto Update Off????
Thanks

I've had my phone come back from sleep with the red number around app store when I haven't opened app store lately. I thought that was a normal feature, like mail.
You mean it should not do that?
I cannot find any setting which controls it however.
PS. I have no idea if maybe it is getting that info through itunes sync or wifi or wireless or what -- I just know it mysteriously pops up without me looking.

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