My Internal storage is being apparently not internal, and cannot move apps to sd I am running CM10.1.3 and have some form of error:

When I go to install an app, and it is too big, it comes up with the storage error – but it says "external storage", even though I have NEVER used an sd card, so apparently, my internal storage is external, even though it says it's internal on the stock ROM

So, I thought "Well, I needed an sd card anyway" and brought a 2GB on to tie me through until I get a 32GB through. However, upon insertion, it mounts, allows me to use it as a normal sd, but I CANNOT move apps to it using Link2SD: It does just not pop-up on the apps screen, and Link2SD seems to not actually do anything (I don't even get the option to move it).

Can you tell me why my internal storage is not internal, and why I cannot move apps to the external SD, and how to fix both?

My current setup

On my (external) SD card, I have a really small partition (about 30mb) and main one (1.9gb) set up, both are using FAT32. Looks like the 30m partition is pretty useless, so I probably need to re-format the card?

Progress

INTERNAL STORAGE- Honestly,  I don't know where to start. 

SD CARD-I have try configuring Link2sd again, to no avail. I also changed the format of the sd to several well used ones.  They either had no effect or came up as "damaged, making the system reset it to FAT32
Summing up from the comments what proved to solve the issue:

Some background

From the system point of view, everything that's not "internal" storage is counted as "external" storage. Especially this includes the external-sd and also the internal-sd card:


  Note: don't be confused by the word "external" here. This directory can better be thought as media/shared storage. It is a filesystem that can hold a relatively large amount of data and that is shared across all applications (does not enforce permissions). Traditionally this is an SD card, but it may also be implemented as built-in storage in a device that is distinct from the protected internal storage and can be mounted as a filesystem on a computer.


(Android Developers; emphasis mine)

Moreover: if an internal sd is available, that becomes the "primary external storage" – and the only place app2sd moves apps to.

Link2SD

(I have just updated our link2sd tag-wiki to make this information easier to find)

When setting up link2sd, the (external) SD card must be partitioned correctly – as described by the instructions on the Link2SD site. In short, the card should have the following partitions, both primary:


first partition, using FAT, to be utilized as-usual for your media etc
second partition, using ExtFS (ext2/3/4), exclusively used by Link2SD



  You should have two partitions on your SD card and both should be primary.
  The first FAT partition is your standard SD card storage. The second partition is used for application files and can be ext2, ext3, ext4, f2fs or FAT.
  
  You need to use a non-FAT file system (ext2, ext3, ext4 or f2fs) on your second partition in order to link app's private data files. Because the FAT file system (FAT16, FAT32 or exFAT) does not support UNIX file ownership or permissions and will cause a security breakdown of app's private files.  
  
  Link2SD does not create the second partition, you need to create it yourself.


(Link2SD; emphasis mine)

Your SD card was partitioned differently (and using FAT only), which will have caused most of the problems you've encountered. And as we've figured: After setting that up correctly, everything seems to be fine.

So enjoy a working installation now!