On older phones where Google Play outdated yet still appears and the application as Market, you'll see this error when you synchronize your account with Gmail. The solution is:
Follow these steps if you are experiencing problems downloading applications from the Android Market:
1 Open the application from the Market.
2 Press the Home button to return to the desktop.
3 Go to Settings \ Applications \ Manage \ Running
4 Tap "Market"
5 Press "Clear cache" (do not clear data)
6 Press "Force Stop"
7 Return to "Settings \ Applications \ Manage \ Running"
8 Press the "Google Services Framework" button (if not press out the "all" button).
9 Press "Clear Data"
10 Press "Force Stop"
11 Back to the Home screen and start Market, give an error message.
12 Turn off and on again on the tablet, once back to Market should work, if an error occurs wait a few minutes to work.
13 At this point, the Market should operate.