iOS 3.1.3 devices not able to download new apps

Update: Apple has fixed the issue. Those with 3.1.3 should now be able to donwload new apps now.

This could probably be a bug but users who are still using older version of iOS (3.1.3 in particular) are not able to download any new applications from iTunes store (directly to the device). However, Apps that are downloaded to their computers can be transferred to their devices. Apple is already notified of this issue and if you are one of those using the older version of iOS, this discussion happening on Apple's support community page would be the place to go to. And btw, UPGRADE YOUR DAMN DEVICE.