You may need to clear your cache. I recall this same thing happening when 2.2 came out...that update included the update to allow update all in the first plce, right? Anyrate, when it happened I cleared the cache in the Market App and then it allowed me to update all. Curiously, most of the apps that previously said an update was available no longer said that. Pointnis, the market was right and my phone was wrong. There was only one app that needed updating.