"There are purchased items on the iPhone..." message appearing
"There are purchased items on the iPhone that have not been transferred to your iTunes library. You should transfer these items to your iTunes library before updating this iPhone. Are you sure you want to continue?"
I've sync'ed my phone and I also clicked File > Transfer Purchases from menu item but I still get the above error when I click update. I'm concerned that something isn't sync'ing properly and when I do the the update something will be removed from my phone, or worse, the entire phone will be deleted. This had to be the most worthless error message ever. If iTunes knows that something hasn't sync'ed why can't if give me a list of these items?
iPhone 3GS iOS 4.3, Mac OS X (10.6.7), iTunes 10.2.1, MacBook Pro 2.66Gz Intel Core i7