After some investigation I followed the instructions on this posting http://forum.xda-developers.com/showthread.php?t=845175 and the market works COMPLETELY!
Namely
- Get a copy of Titanium Backup and sideload it (free version is fine). http://matrixrewriter.com/android/
- Make sure the Market is working with your Google ID, of course.
- Go into Settings -- Applications -- Manage Applications and Force Stop both the Market and Google Services Frameworks apps.
- In Titanium Backup, go into "Backup/Restore", look for "Google Services Framework 2.2", click on it and then choose "Wipe Data". Then go back to the home screen.
- Run the Market app. You should get an error (that's a good thing, as that's what we want. If you don't get an error, re-try the steps above until you do).
- Reboot, and wait at least a minute after the OS is up to let things stabilize.
- Run the Market again. You should see an immediate difference.
