It usually means you have have filled the limited space you have for apps.
Older versions of android had very limited space for apps so you have to manage it carefully. Try:
- removing apps you no longer use
- removing updates for apps you can't remove but no longer use
- clearing data for apps apps you can't remove but no longer use
- clearing caches
If the version of Android you have supports App2SD, go through your apps and move as many as you can to the SD card (there will be a Move to SD button which is not be greyed if Android and the app supports this).
Alternatively, you may be able to root and install a more recent version of Android that doesn't have this issue - see the rooting section of the Desire C sub-forum for more information.