[stereologic]

I was having the same problem with marketplace not downloading anything even though i had never downloaded anything before. This is what I did.

1. Delete everything on your sd card. Make sure there is nothing else android related on your card OR your htc touch itself.
2. Put your android folder containing everything but system.img and data.img on your sd card.
3. Put system.img and data.img on the root of your sd card.
4. Start a data connection, open a broswer, start the weather update etc.
5. Run Haret.exe in your android folder.
6. Set up your google account.
7. Open market place and giver.

It's possible that it might take a few tries. But I've got it working now using these steps, and I have to say, FUCCCCCK IPHONE! hahaha. enjoy.