If you are getting the “insufficient space” error when you try and install apps on your Android device, check this out. You may have upgraded, (without knowing) to the new version of Android Market. It looks cool, but currently may give you this error when trying to install apps over 20MB, even if you do have space.
This is happening on devices that have upgraded to the new Android Market version, the way to fix this is to revert back to the older version until they fix it.
- Go to Settings->Manage Applications and click on All
- Scroll down to Market
- Touch Uninstall Update