Some more information on this old topic:

Sometimes Market fails up install application updates. The download is successful, but the actual installation fails. There is probably something in the logcat, but it doesn't help users.

I just had this happen to me on my development phone (I use one to develop, and update another phone from a different account to verify the update).

After this failure, Market lists the application as not installed, although the existing version (if there was one) actually stays installed.

I was able to resolve the issue by uninstalling the application via Settings -> Applications, then re-installing through Market.

Hope this is useful.

--
Kostya Vasilyev -- WiFi Manager + pretty widget -- http://kmansoft.wordpress.com

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