TS1424 Anyone have problems with iTune purchases and functions when overseas?

I am in Israel, been here for three weeks and had no problems with apps updates, purchases,etc.
suddenly it says that I cannot coplete transactions because PayPal is declining payments.
However a quick check with PayPal shows that my account is in order and it should NOT be a problem.
There is a suggestion that being in another country is related to the problem.
Is this Possible ?

I have this exact problem.  Also affects any app that is using map services (like foursquare).  I've had Apple replace the phone (didn't help), had Verizon replace the SIM card (didn't help), and so I am still trying to solve this while Apple and Verizon point at each other and say that the other one is the problem.
Sorry no solution, but I hope one pops up here on this thread!

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