Cheers in advance,
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Man I wish I had seen this before hard resetting. Yea I had recently changed from @googlemail.com to @gmail.com
or instead of hard resetting, try a few things first.
have you by chance recently changed your google account from @googlemail.com to @gmail.com? if so, change it back. this will solve the market issue and allow you to backup your SMS. then you can change it to Gmail again if you really want to and then hard reset.
if you haven't done that, then try going to settings > applications > manage applications
find and clear cache/clear data and force stop Market, download manager and google talk
that often helps with the 'starting download' thing.
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