Hi All

The problem is due to the file size of version 1.7. A few phone manufacturers(samsung for one) have only given /cache 30mb of space. Anything downloaded from the market will be stored there temporarily until gets installed. As the new package is larger than the cache, the market fails to download it.

Two solutions..
Sideload install (download the apk directly from spacetimestudios) bypassing the market or spacetimes studio needs to reduce the size of the apk to be below 30mb.

Hope the above explains the cause of the problem.