toggle dev link cache back to data using velocity scripts worked for me
Let me start out by reiterating what it seems like I have said a thousand times. The ally is not a powerful/spacious phone. You don't get much space, you are lucky you can install as many apps as you can at this point.
The reason this is happening? The Market downloads all new apps to cache before it installs them. So, if your cache is full up with dalvik entries from having a lot of apps (or a few large ones) you will NOT have enough room to download apps from the market (and probably wouldn't have enough room to install them anyway)
Possible easy fixes:
You already downloaded a bunch of application from the Market (or tried to) and it left a lot of temporary APK files in cache, you can clear these our with my script, by clearing download cache (or the toolkit for that matter) as this will clear out all the temporary market downloads.
Move your dalvik cache off of cache, and back onto data, this will give you more room on cache if you need it, but will leave you with less room on data to install applications
I have been looking into a way to have the market use another place to save its temporary downloads (like the sdcard) but so far I cant find anything and it probably requires modifying the Vending apk, which doesnt play nice. So may not be able to work, unless I can trick it with symlinks... So dont hold your breath
Honestly I don't know what you kids expect out of this phone. If you go around installing huge applications like netflix and games, and tons of 3rd party widgets and replacements. YOU WILL RUN OUT OF ROOM. I see so many posts where you guys are having issues directly related to installing too much **** on your phones. Now if you are simply stricken by the Market not clearing out its old apks (this happens) ignore my rantings -- But for the rest of you, who simply load up your phones and wonder why they run slow and have problems remember this:
With the enhancements we have made to this phone you can install about TWICE as many applications as you can on stock. Why isn't this enough, at what point will the "need" to put more **** on your phone subside and when will you be content. Realize the limitations of your device and stop being surprised when you run into spacial issues on the device.