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I heard about someone with a similar error.
I agree, restore to factory settings, but beofre you do that, save off your contacts, downloads etc...
After that, run an update again.
There is a repair install as well (I think), not sure how to access it.
Personally I would restore back to factory settings again and then install any of the programs again from scratch.
Then import my contacts again.
but before you do that you could try clearing the cache and data from all the apps you restored.