Problems with Apps store and iTunes!!!!! PLeeease help me...

I have the old iPhone 16gb and it has now been upgraded to 2.0.1 but since the update the installer is gone and now its the Apps store i have to use... But everytime I try downloading from the apps store it says "your account is only valid for purchases in the Danish iTunes store" how come????? My friends have iPhones and they havent had the same troubles as me So what could the problem be??? Please help me..

If it is second hand, try putting it in recovery mode, and restoring it with itunes on a mac or pc.
Recovery mode tutoral:http://www.youtube.com/watch?v=dkVr5CxFiFM

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