I've found that when this happens, going into the application in
Market and just hitting install actually successfully updates the app
even though the button said install and the app was already installed.

Market has been really problematic of late. Recently also it has
become stuck in the download state for an application and trying to
cancel it causes Market to FC on a NPE. I reported the bug on
b.android.com yet it has not even been looked at.

-Eric

On Nov 5, 12:35 pm, Kostya Vasilyev <kmans...@gmail.com> wrote:
> 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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