[cjharvey]

Downloaded the 3.0 software to my iPhone 2 days ago and everything seems to be working fine, except I can't download App Store on my iPhone. When I try to update applications, my password doesn't work. I have no trouble logging in using iTunes on my computer- the password works fine here. The user/password is through an AOL email account.

Anyone having this type of problem? Any suggestions of how to fix it? Don't want to lose all my apps...

[Snowman81]

Hmm...maybe the keyboard is capitalizing the first letter of your password? I haven't install 3.0 as yet so I don't know if it's now automatically turning on CAPS, which it shouldn't.

[cjharvey]

No, I'm sure it's not a caps lock and I'm sure I'm typing it correctly. I think it may have to do with the AOL based on other posts I've read. Looking for a solution.

[Ish]

This happened on my girlfriend's phone and she uses aol. The fix is to log out of the app store under Settings>Store>Sign Out. The sign in using your fully qualified name "yourname@aol.com". Enter your password and you should be good to go.

[jerryrs]

I have the same issue. I tried the suggestion of signing off from the store on my iphone but I still continually get the password incorrect error. Even though my aol password works fine in itunes and on my ipod touch. The only difference is my ipod touch is still running os 2.2.1 and my iphone is a 3gs running 3.0

[keyl]

A lot of people, including me, have had this exact same problem. Here is the fix.

I received the following response from iTunes Customer Support by email. I asked them to convert my AOL account to my existing MobileMe account (when I tried to convert it myself, it wouldn't allow me to convert to an existing MobileMe account. This is SO frustrating. Ideally, I'd like to just keep it associated with AOL, with which I have not had any problems. Also, I don't want this associated with an account that I have to pay for (I don't know how long I will want to keep paying $99 a year for MobileMe).

Hope this helps...here is the response:

I understand you are encountering difficulty while attempting to access your iTunes account after the iPhone 3.0 update. My name is Chardonea and I am more than happy to work with you until everything has been resolved to your satisfaction.

This issue can be resolved by converting AOL accounts to an Apple ID. Your AOL iTunes Store account can be converted to an Apple ID account if your account with AOL has expired. This would be necessary if you want to continue to use the account on the iTunes Store.

I can do this conversion for you, but you can do it yourself quickly and easily. If you'd like to try to do it yourself, just attempt to sign in to the iTunes Store using your AOL account three (3) times. After the third sign in attempt, you will be prompted to transition the account to an Apple ID.

During the transition, you will be prompted to enter credit card information since your purchases will no longer be able to be charged to your AOL account. Please note: for a successful transition, it's important to use the same credit card you used on your AOL account when entering your billing information.

If you're having trouble converting your AOL ID to an Apple ID iTunes Store account after following these steps, I can convert your account for you. Before I can do this, however, Apple requires that you provide the following for security reasons:

The billing address listed on the account
Your permission to reset the password

Upon receiving this information in your response, Apple will verify your billing address, reset your password, convert your account, and send you an email with your new password.

Also, please reply back with more information on the errors you are receiving and I will gladly assist you to the best of my abilities.

I await your reply with the necessary information so that I can assist you further. Thank you for being a member of our iTunes Store community.

Have a great day Christopher!

Sincerely,
Chardonea
iTunes Store Customer Support
Please Note: I work M-Thurs, 9:30 AM- 6:30 PM CT

I can't post a link but you can find it in the Apple support discussions

Support > Discussions > Using iPhone > Installing and using iPhone applications > iTunes password not valid on iPhone 3.0

It worked for me

[Intrepyd]

That workaround works. It's still a shame that such a fundamental problem like AOL iTunes accounts not working with 3.0 made it out of beta.

[RedPitSea]

I just signed on from my computer and changed my PW. Works fine now.