This is a discussion on Allowing non market apps to be installed within the Motorola Backflip Development & Hacking forums, part of the Motorola Backflip category; asdfg...
When changing that file, did you look to see if it opened up a setting to allow for non-market apps? It may be that that setting merely "forces" only market apps. If you disable it, it would no longer "force" only market apps, but the phone would still be set/configured for market apps only, unless you enabled non-market apps.
Just a thought.
Did you try to do it like the Backflip using ADB and checking the debug option in the phone??
ADB *does* work to install non-market apps, but I'm looking for a way to disable the limit altogether, so that when the Backflip gets rooted we can hopefully follow the same steps to remove it.
Also yes I checked the settings menu again to see if it opened up an option as you suggested but still nothing . I'm gonna try a hard reset this weekend to see if maybe it will apply the setting after that?