I had this issue before as well where the apps do not sync at all. What I found to help was to restore a backup, plug in your phone overnight and let sync run. Then the next day flash the new rom and your apps will install. The last time I flashed 1.1.1 I noticed that apps weren't downloading, but went into market and it said that they were downloading but none were making progress. I killed and restarted the first in the list and the rest followed.