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Try deleting your data.img and booting again, it solved my market issues (albeit they were different from yours...)
Also maybe try downloading the app via wifi, see if it makes a difference. As far as the keyboard, it's always worked better than WinMo for me. I have had some issues with a line in the startup that gets cleared out and hoses up some of the special characters, but the keys have always worked.
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Thanks! Wouldn't you know it, I checked it just before typing this reply, and now it magically works!
Just so I know for the future, what is the data.img file used for? Does allowing the boot process to recreate this file cause me to loose all my settings and what not?