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Ok, I did manage to fix it. I deleted the app from iTunes but put it in the trash when the dialogue asks you. Then I synced the iphone. Then I reinstalled the app (after dragging it from the trash to my desktop) then I resynced. It seems to work correctly now.

Just a word of warning and this may be my inexperience with apps from iTunes but there is a thread on here that recommends you download the app again from iTunes. It says there is no charge but I didn't get that far because it warned me that I would be charged. Glad I kept the original file!