Here's a small trick to free up some space on your limited device...
Previously there was a system partition, a user partition, and a storage partition. Since 4.2 the user and storage partitions have been combined. This allows one to utilize there majority of the SD card for user apps. When that is full, use titanium to convert some of your user apps to system apps. This will move them to the system partition, freeing up user space. Be careful with what apps thou do this with. Make sure that yuppy only use apps that are safe and trusted, and free of bugs, as a factory reset will not remove these apps from the system partition. The process can be reverted using titanium.
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