App Store Problems?

So my iPhone's been acting pretty weird lately. For about the past two weeks I haven't been getting any emails and haven't been able to download from iTunes however internet and other net based services work just fine. Tried a bunch work arounds, said "Cannot connect to mail server" and "Cannot connect to iTunes" (or something like that) every time. So I did a restore on the phone to a backup from a few weeks ago and it got email and iTunes working again, but now I'm half way into an App Store update and the updates are sitting in limbo with half and quarter status bars (have been like that for 12 hours).

Is this a hardware problem or are the settings on this phone somehow FUBAR and need a full factory restore?