Incorrect password when I download/update apps?

[dirt_mover3g]

Ok so I had a few updates for my apps today and tried to install them but when I typed in my password a message popped up saying incorrect password. Ok maybe I made a typo, entered it again and same message popped up, now I know it was typed in right that time but tried again anyways and still nothing. The fourth time I got the password retrieval message pop up and tried going through that process but I don't use an apple ID, I have an AOL screen name for my iTunes account and it didn't give any options for that. So I then decided to connect my phone up to iTunes on my computer and I let it sync and backup and it fixed the problem, long enough to download one update. Hooked up to iTunes again and sane thing happens one download and back to the incorrect password message.
It's only been doing this since I updated to OS 3.0. Has anyone had this problem before? And any ideas on how to solve the problem? Thanks on advance!