iPhone OS 3.0 App Re-Download Mystery Unraveled writes:

"Last week we reported on a new policy found in the iPhone OS 3.0 betas that halted the ability to re-download apps for free from the iPhone itself. With this new message you could only re-download an app for free from iTunes on your computer, or repurchase an app from the device itself.

After digging around for a few hours I've finally figured out why some devices are getting the new message and some are being presented with the old message allowing them to re-download for free directly from the device."

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