An update on my internal storage issue:
*Found the "Factory Data Reset" function under settings/privacy.
*Did the reset and internal storage went from 46mb to 342mb. There were a few issues after, home button was inop, and the launcher was gone. All downloaded apps were also gone, but that was expected.
*Downloaded and re-installed Titanium Back-up, and ran a batch job: Restore System Data (from SD)
* All is good, launcher is back, home button works, 342 mb internal storage available. Everything works fine.
But, internal storage is slowly filling up again. Three days after the reset, I am down to 327mb. I have not installed any apps, I have updates turned off on everything I can find, background data is off. Any suggestions on how to find out what is causing this?