Hi gang, I finally got tired of waiting for Apple to fix this problem so I converted my aol account in itunes to an apple id. Here is the process to recap:
1) In Itunes go to the Store and use your aol user id but incorrect password 3 times.
2) After 3 failed attempts Itunes will offer to allow you to create an apple ID and transfer your purchases over for you. Note you will need to create a brand new apple id. (I tried to use an existing one but it did not work.)
3) Fill out the requested information (billing information, credit card, etc.)
4) Your itunes aol account information will be immediately transferred over to your newly created apple id.
I confirmed that my purchases have safely transferred over. I know its not a perfect solution but at least it will get you back to your app downloading!