How do I transfer my iPhone applications to iTunes? How to copy iPod Touch applications to my computer?
Do I have to purchase again my iPhone applications since is no way to transfer them to my computer?

Actually it is a way, easy enough to transfer all your purchased applications from iPod Touch / iPhone to your computer / iTunes. It was a lot a workaround for understanding how to copy these apps to iTunes but finally I did it. The best part – there is no need to buy a special software to transfer these iPhone / iPod Touch applications to your computer! And NO – you don’t have to buy those apps again :)

Since it was a tricky situation I will explain you step by step how to do this. And actually is not that complicated as you might think now.

1. Open up iTunes and connect your iPod Touch / iPhone to your computer.
2. Go to Store (top menu) and click on Authorize Computer.
3. Go to Advance (top menu) and click on Turn On Home Sharing.
4. Go to File (top menu) and click on Transfer Purchased from "your_name” iPod.

Now that you transferred all of those iPod applications to your Computer you have to find them and copy them in a safe place on your hard drive(s) just to make sure in case of iPod failure or Windows problem you still have your purchased apps. You can install them with just a double click – will go automatically into your iTunes Applications.
The default location for your applications should be: C:\Documents and Settings\YourName\My Documents\My Music\iTunes\iTunes Media\Mobile Applications\

Here some print screens if you have a hard time locating the menu.