I had the same issue. It is a different low memory message than ususal. This one is directly related to the second OTA update/patch and it says I do not have enough internal storage to install the update. I deleted virtually all of my text messages and several apps and now when I go to Settings-Updates, there are no updates. What gives? Did it install or not?
Go into the setting apps and all apps and clear the data ... if you are using sense and have not rooted check the messaging and Facebook streams from .com.messaging and. Com.Facebook no app should really have data over 5-10mbs
I have been having this issue for at least 4 months. I finally cleared the cache on the facebook app (over 30MB), and it has seemed to solve the problem for now. Additionally, I have moved all apps that are capable to the SD storage, and I have cleared out a majority of my messages on my txt and mms as well as gmail and pop3. Other than this error code appearing, the Incredible has been a decent phone to use.