Bug reported as fixed by Apple, see accepted answer below ...
UPDATE MON AUG 23rd 10:00 GMT
Although the bug report with apple hasn't been closed yet, it now seems to be working (at least for a couple of us) OK. It could be they have nailed it, or the fix is in testing, and I'll report back when (if) I hear anything more from Apple.
UPDATE FRI AUG 20th
Just to say I've had an email back from Apple Engineering (21:20 GMT) and they have said:
"Thank you for reporting this. We're aware of this issue and are currently working on a fix."
So hopefully there will soon be a resolution!
[ update to question below. There definitely seems to be a storekit sandbox issue at present. I've seen 4 or 5 other people report the same fault, but would appreciate a larger sample size! If you have a storekit implementation that you can test in the sandbox if you could report whether or not it works for you that would be much appreciated. I've logged a bug with apple as bug id#8329461 but am not sure how else to expedite this or if it is really a widespread issue. ]
I have a working iPhone storekit implementation in development. All the items for purchase are consumable, we have multiple test accounts established.
All of a sudden today, my sequence goes;
1) Request product list from Apple ... works fine (so can connect to store OK)
2) Purchase item - get "Confirm your In App Purchase" alert as normal
3) (click buy)
4a) My code gets a failed transaction with error code 2 and description "cannot connect to itunes store" via the - (void)paymentQueue:(SKPaymentQueue *)queue updatedTransactions:(NSArray *)transactions method.
[[SKPaymentQueue defaultQueue] finishTransaction: transaction] is being called in this situation.
4b) The user gets an alert "You've already purchased this but it hasn't been downloaded" (it has never been purchased on this device with this user account).
This is happening on different devices and with test accounts that have never been used before. I'm not aware of any changes to our code. Can anyone else confirm that the storekit test framework is working correctly for them? Is anyone else having issues today?
Any ideas as to what causes this strangeness? The message "cannot connect to itunes store" seems odd given it clearly can for retrieving product ids and watching the transaction.
NB. I also note that setting up test user accounts in the store has changed - there are now stricter password requirements etc and so I'm wondering if Apple have changed something that might be causing the issue.
TIA Roger
PS. On a first attempt on a new device, I get the alert "unable to connect to itunes store try again later" but then what happens is that the device thinks it has already been purchased so gives the message about downloading again.