Originally Posted by Mike_73
... itunes is set to my current location. I tried to change this, but then got the message that I would have to spend the rest of my prepaid money first which is in euros.
I don't understand this part.
I change from the Canadian to the US iTunes and back on both the iPad itself and my desktop iTunes and I have never seen a message like that. You do have separate user names, addresses, etc., for the two stores don't you?
I do use my real credit card in the Canadian store but the US account I originally set-up without a credit card. If all you want is free apps, that's all you need to do. The simple way to do this is to sign out of your account and switch to the US store anonymously. Now just try to "purchase" a free app. You'll get a new account set-up wizard that includes "no credit card" as an option. If you try to start an account the normal way, the wizard is different and the "no credit card" option is missing.
Once you've done that, if you want to get paid apps from the US store or buy books from the US iBooks store all you need to do is load your US account with either a US iTunes card (the cards are country-specific) or one of those pre-loaded Visa, MC or Amex cards you can buy just about anywhere with different denominations. Just make sure you get one that is usable worldwide. Some of those are also country-limited.
That's all there is to it. Well, except for the small hassle of having to switch back and forth for app updates. Even the free apps that are available in both stores require that you update them from the store you initially got it from. It's a good idea to get anything that is available in your home country from there and only use the US store for things you can only get there like the B&N iPad app, ABC, Hulu, etc.
Hope that helps.