Problem downloading apps

I am using my Micromax A27 Android OS, v2.3 (Gingerbread) phone since one year.
I had to change my handset for some reasons yesterday.
But when I re-inserted my original SIM Card and SD Card in the same phone I was using previously, the GOOGLE PLAY STORE does not work.

It shows "GOOGLE TALK AUTHENTICATION FAILED".
It asked me to do a Factory Data Reset, but it was of no use.
It still shows the same notification.

It also shows Error retrieving information from server [RPC:S-7:AEC-0 3P4L-IP4-W5NJW]
I tried signing in with a new gmail account, but that too had no results.
What is the problem with my google talk in my phone?
Please suggest a solution at earliest.
What should I do?

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