The quick bandaid fix to re-enable uninterrupted Market downloads and stop the error notices is to go into Manage Applications pull up the Market app and uninstall updates - this will put the Market app back to the factory default state (because you can't incrementally roll back changes to the last good update version) but at least you can restore Market download functionality without the pauses or error noitices - at least temporarily until the Market app auto-updates again (and you have to rinse-repeat the above process again). We'll just have to wait until a subsequent Market update permanently fixes the issue (at least until the next auto-update breaks it again LOL).
