Have you got it set to work over cellular, or wifi only?
Set for cellular but I am 99% of the time on wifi
[Edit] Well seems to be working now. Had to deauthorize my PC in iTunes and authorize it again. Weird it was not showing in my account tab in the store but all my stuff worked and songs played etc. Once it authorized again and it showed up in my account, the next purchase started installing on iPhone automagicly
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