Like me you have also encountered problem while installing applications using pc suite saying the phone is being used or busy.
I haven't found any solution for this but I can advice you to get the application installed most of times.
As you connect your phone via pc suite / ovi suite synchronization starts. Its a background process and we don't notice it. We cannot install application during this period. Wait for this to get over. Synchronization details will be displayed on your phone screen when it is complete.
Also, if you have just switch on-ed your device wait for sometime. There are many background process going on mainly music library updating.
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