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Help Google Play Insufficient Storage Available

Hi, I have an Xperia Ray (ST18a). When I try to update my apps or install an app it says there is insufficient storage available. I still have around 150Mb left of internal storage and none of the apps are over 10Mb. I tried restoring the phone to factory default everything. My phone is not rooted. Please Help!
 
If you did a factory reset then what happens when you tried to install apps again? Did the insufficient storage thing comes up when you only have 150mb left?

If your phone is using ICS its pretty easy to move some of the installed apps to your SD card instead, freeing up internal space.
 
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