Got do /etc/init.d/ and move the 01mvdalvik file or rename it to 01mvdalvik.bak. Then clear the market cache and data. Reboot recovery and wipe cache and dalvik.
I keep receiving the insufficient space error with the market. I tried these steps with File Manager but I wasn't allowed to rename, move, or delete the file. Any other programs to use preferably free.
Also, I just started having trouble moving apps to the sd card with the built in move to sd. An error message pops up the first time I try saying " Failed to move application." When I try a second time it works. Not a big issue but a small annoyance.