If you continue to have problems setting up your Google account on your Android device, this will solve your problem. This is a frequent problem experienced by users of the Google Nexus One phone.
If you did not setup your google account when you first boot up your phone, you will repeatedly get this error.
To solve this problem, do the following…
1. Hard reset your phone. You will lose all information that is currently on your phone when you do this.
Select Settings -> Security -> Factory Data Reset
2. Once the phone reboots, input your google account information when the phone asks for it.
3. If you are still having problems, you can try the YouTube Connection Trick:
a. Add YouTube app and login with gmail account
b. Go into Gmail App and add account if needed.
c. Sign into Gmail account wither username and password
d. Go through login process
If you are still having problems, check out some of the additonal fixes in our wonderful comments below.