I have tried all the guides to get this working, from force closing market and clearing data/cache etc to using the adb command method to move it to SD Card but nothing worked.
I came accross a FREE app on the android market. I simply installed and ran the app and pressed the button. Then tried the market again and it fixed the error!
CLICK HERE TO DOWNLOAD THE APP
I did not create this app, i simply want to share it with others because i know it was a complete pain. Make sure you give the app good feedback in the market.