I AM FINALLY DONE with the manual root!!! Tired as heck. I haven't done this much troubleshooting in a long time. My head hurts now.
Bottom line...should have enabled Market immediately after rooting and enabling install of non-market apps. Wasted time restoring from backup before working on Market.
Started from scratch, re-rooted, enabled Market first, but that still wasn't good enough. Apparently this new update doesn't like the "framework.jar" file that's included in the Google Apps (mail, calendar, youtube, etc) package that's used to enable Market. Upon booting up, the device would hang at the "n". Figured it had to be the overwritten "framework.jar" file.
Started from scratch again, re-rooted, enabled Market first. This time I didn't overwrite the stock "framework.jar". Success. Device booted up. Was able to login to YouTube to establish a Google account on the device. Checked Gmail it initially worked allowing me to sync, but then it forced close. That was a good sign though. It meant my account is on the device. Used Titanium Backup to wipe the data. Success.
Tried Market, I was prompted to accept the term of service, but it forced closed. Another good sign. I'm getting there. Googled, trying to figure out how to get Market working. Wasn't going to overwrite that "framework.jar" file. I knew that was a dead end.
Thanks to XDA I discovered that before the "framework.jar" file fix for enabling Market, the old way to enable Market was to generate an AndroidID using AVD (Android Virtual Devices) Emulator.
Totally clueless about AVD. Googled some more. Stumbled upon a step-by-step guide to generating an AndroidID with AVD! With the settings needed provided by XDA and this guide I was successful.
Next, I used Root Explorer and SQLeditor to change the value for "AndroidID" located in the table "meta" in the database located here:
/data/data/com.google.android.googleapps/databases/gls.db and BINGO Market works!
I was able to restore ALL of my apps, data, and settings. Thankfully, my launcher (AWD) restored itself with my desktops. The only thing I have to fix are the widgets that need to be re-done.
Oh, I need to disable updates!