Sony Ericsson MK16i
Android version: 2.3.4
Recently I did factory rest to my old Sony Ericsson MK16i and now I cannot connect/use "Market/Play Store".
Internet connection does work - checked and confirmed with phone web browser.

Following screens presents what happens.
1. After I open "Market/Play Store", I accept agreement

2. In a next step I get message: A server error has occured. (full message under the link)

3. Retry ends up with "Loading..." screen which takes forever.

I did factory reset a couple of times more. I also cleared up the cache from Market app.
None of these helped.

Does anyone know what to do know?
It was working before factory reset.