Android reserves about 100MB of internal storage for ongoing operations and won't allow that to be used for applications. If you want to restore that game to internal storage you need to either remove some of the installed apps, or else run it from the SD card.
Manage Applications --> Menu key --> Sort by size --> look at the ones taking up a lot of space and clear the data on them. I recommend not clearing data on games. Things like Fb and social apps store a lot of data so clear the data and all you have to do is log back into the apps.
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