I choose a free song from the web interface of Android Market's new Music store...
1. It recognizes my attempt to purchase (and also what account I am trying to purchase from) and prompts me to agree to Terms & Conditions.
2. I click continue to agree.
3. "For your protection on checkout, please sign into your account again."
4. I click continue, am brought to universal Google Account sign-in page and need only type in password (as it recognizes I was already signed in) and submit this re-login information.
5. I am brought back to Phase 1: Terms & Conditions agreement, where the loop repeats itself...
Note: I have only tried purchasing free songs so far.