Ipod Touch sync issue

I've had a Iphone for the last couple months and have had no major issues with it.. for our sons birthday we bought him a 8gig ipod touch..
when I try to sync the touch with my itunes, I can add music to it fine.. but all the applications in the list(99% free apps) are grey and it won't let me add anything thru itunes...

if I go to the app store.. and choose something that I already have download into itunes.. redownload the software.. it will then install on the touch fine..


when I plug my iphone in.. I get full access to the applications list thru itunes..

my phone is running 3.1.3 and the touch is running 3.1.2 incase that may make difference..

 

after a day of screwing around I ended up restoring/updating the ipod touch.. that seems to have solved my problem and have no issues getting apps onto it now..