SOLVED... FINALLY!
Okay, so I guess I'm a lil pre-mature on this, but I just got off the phone with Apple support. yeah, that's right, "Apple support" and "phone" in the same sentence. LOL. that was a trick in itself! I was surprised to see that even after I finally got an iphone tech support rep on the phone, THEY were unable to get 'itunes' support via phone
Ha Ha, even they have to do this whole support chat on the web. crazy. anyway, on to the solution you've all been rightfully DEMANDING!
for starters, I was instructed to attempt to buy an app on itunes ON MY COMPUTER. I was told that it's a bug and sometimes, you have to enter your billing information on the computer first, THEN sync to iphone. So, I loaded up my itunes with them on the phone and attempted to buy a free app on my computer via itunes. I saw that it had already had my billing information, all but my 3 digit pin... here we go I thought. but after entering it, it DID fail as I thought it would, but for a different reason than I expected. I had an "outstanding" bill of $1.08! My card, as I knew, was at a zero balance, not even a dollar on my card. So that's it. LOL all you people need to go put a few bucks on your bank card and take care of your balance. LOL that easy.
This thing works just like a gas pump, if the money ain't there, NO GAS. only in this case, you wouldn't be aloud to use the window wiper for free cause you owe them money.
So, to put it in one sentence.... PAY YOUR BALANCE! which you can do via itunes on your comptuer.
Hope that helps someone out there...