App Store Not Working Right...

On my 1G ipod touch, whenever i go to the app store, it is all in German (not that that matters to me), but when i try to buy anything, it tells me to log in, then when it starts to download, it says "Your account is only valid for purchases in the US iTunes Store." I also get it on the mobile iTunes. Even when i log in, it still is in the German iTunes/App Store.
I have no idea why this happened, and have never heard of it happening before.
Any ideas?
Thanks