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Help Can't install apps after 2.2 update

C

Chase-HFD

Newbie
So I got my N1 today and installed apps w/ no problem. After I manually updated to 2.2, whenever I try and download an app it says "Sorry, there's not enough space to install this item."
If I go to settings, SD Card & phone storage settings, it says I have 158MB available space under Internal phone storage. So I have plenty of room to install things, what's the deal?

Do I need to go back to 2.1?
 
I uninstalled some apps and it still didn't give me any room.

BUT...I just changed to the SD card that came w/ the phone since it's empty and mine was full. Now it's letting me install some programs. So maybe it's looking at the SD available memory for some reason instead of the phone? Even though it's not installing on the SD card.... Only thing I can think of right now. Don't see anywhere to change that
 
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