Try this: Press Menu then Settings then Applications then Manage Applications then All (assuming you are on 2.2) then scroll down and look for Market.
Press Market and then press Clear data. Also press Clear cache if it doesn't automatically. Then go back into the Market and is should ask you to agree to the terms again and then it should refresh the market as well as all your downloads.

 

Yeah it stinks that they suggested you do a hard reset especially since its less then a day old but its possible that if you upgraded to 2.2 that it switched a setting or 2 around and thats what is causing your issues.

My suggestion is to do the above first then do the hard reset if that doesnt work.

You probably dont have much on the phone right now so it wouldnt be a huge loss if you did.

Most problems for these phones are easily fixed by a hard reset.

My suggestion though is once its up and running to purchase MyBackUp Pro. Its 5 dollars in the market but backs up your apps and all settings/ MMS/ SMS/ Call logs. So that in the even you need to do another hard reset its all backed up and you dont lose anything.

 

I wouldn't be so fast to buy that. We have some regulars here that would be screaming like HTC kicked their dog if this was widespread.

Try the fixes above, it won't hurt, and you will learn something about your new toy

Also, did you upgrade or are you on 2.1? Do you know how to check? (I'm not just blurting out how...it's easy to find, and we'll help if you need for sure!)

 

This has happened to me also. I called Sprint and was on the phone with them for over an hour. I was transferred 3 times and no one knew or even heard of this problem. I am worried that if I do a hard reset, I will still not be able to access the market and then I am stuck no being able to get any apps. I guess I will wait until another update comes out.

 

Hey looks like this topic is kinda dead but its still the top result on google when searching for this issue so hopefully this will help someone. The android market requires that background data will be turned on but will often crash before telling you this. If clearing the data didn't work for you make sure "Background Data" is checked in Settings > Accounts & Sync. Good Luck!

 

Yes Android market will error out if data is not enabled, or there is no data connection (either network 3g / wifi / etc...)

 

Here's a fix I found works for me:
1. mount the phone to your pc via USB
2. backup & delete the folder named ".android_secure"

Done.

This fixed all install errors including ones received through the market and the Amazon market app.

Good luck!

Spires