I had the same (or very similar) issue with my Huawei H881C which started 4 days ago. I was able to fix it today. I tried all of the suggestions above. Even though they did not work (and I never did try the App2SD application), I did find that I could fix the problem manually by uninstalling a very large application (in my case, the FitBit mobile app) and then setting my default install location to the SD card. I then went to the PlayStore, re-installed FitBit, and that freed up over 100 Meg on internal storage. The 'low-space' indicator went away. To finish the fix (instead of using something like App2SD), I manually moved all of the applications (which the Huawei allows me to move) to the SD card. I did that by clicking on the APPS icon. Then I tapped the 'Menu' and chose MANAGE APPS. I went to 'ON SD CARD' and for any app which was using zero MB I check-marked it, and moved it to the SD card. After I finished moving them all I ended up with 162 MB free of internal storage (468 MB used) which was about 100 MB more breathing room than before. I left the default install location as SD to help avoid this problem in the future. (This phone apparently needs some cushion space taken from internal storage to perform basic phone functions > like simply take a picture (let alone store it), or synchronize email accounts. Even if you're not actually saving something, if that functional space isn't there, the phone can't perform everything it needs to. Once free space falls to around 60 MB, the above process might have to be used).