Motorola Milestone/Droid after update to Froyo -> Market crashes when clicking on settings factory data reset does not help

Updated my Milestone/Droid to Android 2.2, official version from motorola. When the market gets updated (at a random point of time after factory reset, automagically it seems) chosing setting within market causes market to crash, always.

I have tried factory resetting with a blank sd card in the phone, trying it again with a virgin test gmail account now - takes ages since i have to wait till the market updates...

Any ideas? I am close to turning the phone into a brick by smashing it with a literal one.