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The phone considers the part of the internal storage not reserved for apps to be a SD card. If you go to the storage part of settings or use a file browser, you get options to see 2 different partitions (or 3 if you're rooted), and your device considers one to be a "SD card" of sorts.
Have you tried restarting after you freed up memory?
Apps with widgets don't like being on sd card (even this virtual one). As you had moved apps to sd - this may be why your widgets kept dissapearing whenever you rebooted. I would keep apps with widgets on internal phone memory.
Did you manage to fix your problem.
Now I am getting insufficient space pop up when I try to update something.