Wish I had 1GB free on my 16GB iPhone 5 to put the update on, lol. Plus, until a few days ago, there was and Exchange Server-killing bug in Apple's 6.x Activesync implementation...a calendar bug (that's the reason for the latest, latest update, mostly). This purchased item issue has been annoying me for a month (blank screen)...and it was a shaky item at best, before that in 6.x. It's still better than having to call Apple and beg to redownload your music and apps, though, lol.
My problem was similiar. iPhone 5 running latest software. Only 140 apps, not the thousands some of you have. iTunes crashing when trying to sync the phone. It would always stop when "Finding previous purchases". Well, after trying numerous fixes and work arounds, none of which worked, I sat down, ate a cheese and pickle sandwich with a glass of "Fursty Ferret" ale, and tried Aarows fix. I d/l Temple Run for free, and wonder of wonders, it fixed the problem and gave iTunes a boot up the a**e and got it working again. Not sure the sandwich and ale helped but they calmed my nerves enough to keep looking and find read Aarows post, thanks buddy. Dunno how long it will last but so far, fingers crossed it's still working.
Wow solved it thanks Aarows and JonGray
Another link to the post in question
"I simply downloaded an app (any app will do) using itunes instead of my phone, and now all of a sudden, the "previous purchases" is working!" - Aarows
holy crap, wow that has solved it.
I wish I had scrolled this far into the comments before thank your the tip Jon I was just about to run out to get a bottle of "Fursty Ferret" when I thought some water and my packet of Jalapeno crisps would do the trick in hindsight the firery pepper flavoured crips where not the best combination to go with water my mouth is now on fire the water does not help, I don't have an achololic beverage to wash it down with but who cares, I can now view my purchased apps.
I wonder if the same trick will work for my music store?
Well this problem is now causing me a major problem. I lost my backup because of a laptop failure and accidentally deleted 1password pro from my iphone. The developer has since removed the app from the app store because they are only supporting an entirely new app on the app store. After talking to the developer of the app the only way to redownload apps from the appstore when they are removed from the app store is to go to the purchased section of the app store on the device. You can not download removed apps from the app store on the pc through itunes. I now have no way to get 1password pro again now until Apple fixed this problem.