[CaptainChaos]

I had this issue here in the U.S. when it kept directing me to a European store. The only way that I got it working was by doing this:

In iTunes I clicked on "iTunes Store"
Then I clicked on my email account in the top right hand corner.
I changed the country to USA.
Resynced and abracadabra it let me download from my phone.

Hope this helps.