I have 316mb of apps installed (over one hundred) and 432mb free with zero problems. Due to the way the Inc is mapped, you should have no problems, even if down to a few megs. The reason is the OS and stock apps are installed on the 512mb rom and nothing else. All third party apps are on the 748mb of allocated flash space- hence the reason only 6.6gb of space is free for the "8gb" built in Seems you have corrupted flash memory, either due to hardware failure or a rogue app. Only practical option (if you still have the problem) is a system restore. This will put the device "as new". Any problem after that means hardware failure of the 748mb flash storage allocation.