iPod touch iPod Touch 4g won't download/sync apps?

[1235213]

Since about the start of may, My iPod touch has stopped downloading and getting apps from itunes.

On IPhone AppStore
I go to the appstore and buy the app I wish, and I enter my password. I'm redirected to the app screen, and the app says "waiting" as it's title.
After a few seconds, the app magically vanishes, with no note or anything. I go back into app store and it says "Buy/Free" instead of "Installed".


On Computer iTunes Store

I download the apps of my pick, and then I drag them to "iPhone/iPod Touch" in iTunes sidebar (Manual Install of apps). However instead of iPhone bar turning a blue, it just stays solid. I drop the app and nothing happens.


Is the app store down? Is it a bug with my phone?

Software: 4.2.1 non-Jailbroken

 

[Mr Slippy IV]

If you have an iPod that can run it, your first step should always be to upgrade the device to the latest version of iOS (4.3.3).