A New Discovery
If you want to update purchased apps you will have to go into settings-general-restrictions- enter your passcode and allow In-apps to be purchased. This is shut off because supposedly it will allow updates to be purchased without using the passwords and we don't want students purchasing those tempting extras that pop up every now and then. In saying that, when you've finished updating, shut it off again.
If you have Toontastic and bought the extra backgrounds and "toys" then after you complete the above -go into the Toy Store and it will allow you to update your new features. Have fun!!!