Originally Posted by jj2me
A reboot or reset is the surest way to free up RAM. And again, your error message was written by a programmer, so I suspect more that when they refer to "memory" they mean RAM. (Though any individual programmer could be sloppy and ambiguously call everything "memory".)
Also, I have experienced failed downloads that worked as soon as I freed up memory (I use Superbox to do that, maybe there are other utilities that free RAM, and it's quicker than a reboot).
For me, this (unrooted) phone's worst constraint is not the battery, it's RAM. I've had to give up having my four e-mail accounts on the phone (other than my Gmail account) because the Email process was taking up 50MB.
Why not? RAM is always used. Every bit that flows into phone storage hits RAM first.
1st, I downloaded the same exact .bin file from XDA Forums among thousands of other files that never failed to download. 2nd, the OTA update always failed at the exact same point, 50%. Everything points to the target download location running out of space. I'm just looking at the evidence.
Please also note that a developer labeled the internal SD card "Internal Memory" as it seems this is the basis for you thinking it's a RAM issue. If were talking terminology here.
I wish I would have found this app before doing my factory reset: https://market.android.com/details?id=com.a0soft.gphone.acc.free&feature=sear ch_result