Are you attempting to download from the Market while on wifi or on 3G? I had noticed from your info that you're a Bell customer as well, and I have had this issue before. If you're connected to 3G, then you have to tweak your APN settings a little bit. Make sure that your proxy port is set to 80, rather than the empty setting that resides there. If you're on wifi, then sure that the box next to "Enable proxy on wifi" is checked in the Wireless & Network Settings menu. If those are set, and you've restarted (trust me on this, sometimes all you really needed was a power cycle) then you should be back in business and downloading apps like a champ.
I was on 3G. I found when I switched to Wifi (Finally went and adjusted my router so I will stay connected while at home) and it worked fine. I just added the port, so I'll check next time I'm off wifi. Thanks!
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