Fixing "Couldn't install on USB storage or SD card" issue I recently had a problem that prevented updating any application installed on the SD card. When trying to update the application in the market, the update failed and the following message was given as detailed error:


  Couldn't install on USB storage or SD card.


A possible workaround is to move the application back to the phone, update it, and then move it to the SD card again.

How can we fix the error permanently?
A fix I've found and that works is to mount the SD card on a PC, open the *.android_secure* folder and delete a file named smdl2tmp1.asec.

It seems that it's a leftover file from a previous (failed?) installation/update that prevents another update to run correctly.