Hi! Did you ever find out what to do? I'm encountering the same problem today. I did everything possible, well except for restoring. I'm hoping you could help me. Please, please, tell me there's another way aside from restoring. Heres a recap of what i did so far so I rebooted(several times), deleted every app in the multitask and rebooted, restored to original settings, changed my password, changed my payment info, turned off my restriction, turned on my 'automatically sync new apps, etc., finished all incomplete downloads in my pc, synced and still nothing happened, what's so bad is the fact that it's downloading in my pc but not syncing/installing in my iPad2. I'm literally going nuts over this.. PLEASE HELP! Hoping you have the answer. Or somebody pleeeeaaaaseee.. Thanks you so much.