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Something is wrong but I am not sure what. I recently did the CM7 to sd card and have downloaded about 8 apps. I don't think any took more than a minute.
Could it be your router settings that are only permitting a very slow transfer of info? When you are using the browser does it work reasonably fast.
As it only takes a short time you could try reimaging your SD card and starting fresh and see if that helps
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