Unable to download apps or songs on iTouch, 2gen

Hi,
I have a 32g 2nd gen itouch. I have all the lastest updates for it. I can access the apps using the Apps icon, however I can not download them.
When I try, it works for about 5 secs, then says "Authorization failed. Please connect to iTunes." SO, I go to the itunes on my itouch and try to download a song...then I get "Authorization failed. Please connect to itunes." WHAT?
Does anybody have any idea what's wrong?
I am able to download apps through iTunes on my home comp and then sync, but I would like to the ability to do that through the iTouch when I want to.
Thanks

I set up the touch using my home computer. My account has not changed at all. In fact, in the itunes account on my touch, it recognizes my account name. I am able to download podcasts to my itouch, but can NOT download songs or apps. Go figure...

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