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Help KitKat Memory Issue

So I've installed Kit Kat, and am experiencing an issue my internal (application) memory is reporting as full, even though 'Storage' says there's clearly enough.

For instance, the graph will show that I should have over 1.5GB available, however the 'Available' space only shows 135MB available, and this is just after installing one or two small (<10MB) applications.

I tried a factory reset, space shows normal, but then after just installing an application it drains back out.

At this point I'm unable to install more than 2 (at most 3) applications before it reports 'insufficient space'.

Any ideas on what is causing this?

Thanks for all your help!
 

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