hey i think i found a fix for this error just now!

what happened was, i was installing my 5th skyscape app when the error appeared and froze my gvm. after a reboot i found all my apps gone so i decided to reformat the virtual memory (64mb). i installed the 1st app without a hitch but instead of closing the emulated palm window, i just switched to the gvm window (leaving the emulator running) i then installed app after app without any error!

i have successfully installed 10 skyscape apps, 3 freeware apps and 4 games!!! and the installation was so snappy that the "app successfully installed" dialog appeared in less than second after pressing install!

try it out guys and tell me if this works for you.