I got this from another user on the Apple community boards after posting that i may restore my phone. Looks like we are going to have to wait for a fix from Apple;
according to most reports, it all seems related to something gone wrong with at least a large part of Apple Store accounts. Therefore I wouldn't restore the phone at all, it's not something on the device, I get similar errors from whatever angle I access Apple's Store(s). I'm facing the following issues:
No updates from iTunes (error 11111)
No updates from iPhone 4s or iPad 2 (the empty update bar appears on the app's icon and then disappears immediately)
No updates from App Store on my Mac (error "MZCommerce.JmsSendError_message")
As most other users, I can still download brand new apps, it's just updates that don't work. No restore/reinstall should solve the problem until the guys working at the Apple's e-commerce system get this bug sorted out in their servers.