Samsung Galaxy S2 Software Update Error

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So my phone keeps giving me a message saying that i need to update my software. The update is 125.51 MB so its fairly small, but when i hit "install" it says "Unable to install software update. Not enough space in device storage or SD card. Delete some items." The problem is that i have 332 MB left on my phone memory and 22.3 GB left on my SD card memory. So what the heck do i do? Storage is not the problem at all but no matter how many times i restart my phone or try different methods it keeps giving me the same message.
 
Had the same update download and have had all sorts of problems with my phone and eventually last night it now wont restart and is stuck in a loop , To say I am angry is a understated this is a feckin nightmare anyone got any advice on how to proceed ??.:(