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unable to download or update app using the market

Hi guys, I am on HTC desire Android 2.2.
Recently I am unable to update or download apps in the Android market.
I have recently cleared some of the folders in my SD card and this problem persist.
Do any of u guys have this problem? And do factory reset my phone helps?(it is troublesome to do so also)

Have you cleared data on market.apk ?
 
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