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I had this problem. I cleared the cache from the market app, that didn't work, so I did the "uninstall updates" and it has worked since. It even updated to the newest market yesterday and is still working fine.
Google decided to start moving their apps from /system to /data so that they could update those apps through the market and not having to wait until an Android update was rolled out. Amy application that you have installed in /system (system apps or apps installed there from whatever ROM you might be using) will not allow you to update via the market because /system is read only. You first need to either rename or delete the copy in /system (and sometimes reboot) before you can update with the market version. My question is...how does Google expect non rooted users to do this?
Also, if you have a themed version of an app installed in /data, you will also not be able to update via the market. When someone themes an app, the signature that the developer used to the sign the app becomes broken in a sense. In order to install it, the themer needs to resign the app and odds are they will not have access to the original devloper's keystore and key that was used. When the update from the market starts to install, it checks to make sure that the keys match. In this case they won't so the installation is aborted.
That covers the main causes for installation errors. As for Angry Birds, it's always installed fine on my end. I am guessiing this may be a Install To SDCard issue? I think I'm also the only person who doesn't care for that game either lol.