SQL Server 2008 R2 lack of space?
I have upgraded from SQL Server 2003 to SQL Server 2008 R2 because my database was 4G and needed extra space.


There is no SQL Server 2003 .. I believe you meant SQL Server 2005.


  I though SQL Server 2008 R2 has a limit of 10Gigs hence I would have 6 Gigs free, however I only got 1Gig free...


Space Available : Displays the amount of available space in the database in megabytes.

SQL server 2008 R2 Express edition has a 10GB limit. SQL Server 2008 R2 Express is still limited to 1 CPU and 1 GB or RAM.

What you are seeing 1GB free is the free space in the database. When you fill up that left 1GB and need more, SQL Server will kick in autogrow algorithm that will grow your database by the amount that you have specified (provided you have autogrowth enabled). Also, have your database autogrowth set to a sensible value instead of default 1MB for data and 10% for log (ignore the values in the below image since its one of my crap database).

Also, enable instant initialization (only applicable to sql server data files).