Getting market error "Sorry there's not enough space to install this item." Android Froyo 2.2 with 3GB available mmcblk0p2 space and over 3GB free space on MicroSD.

Have no idea from when it started. Since then, every time when I try to download/update an APP from Android Market, it prompted the "Sorry, There's not enough space to install this item." message for further action.

Have tried a few hints from Web, but yet no luck:


Format MicroSD.
Clean up Memory and Cache of Android Market.
Repartition the main storage from 4GB to 3GB.
tune2fs -m 1 /dev/block/mmcblk0p2


Any body can give steps to overcome this?

---Update on Debug message gathered from ADB---

When I clicked on Install-->OK to start download from Market, it logged a warning message in logcat:


  14:45:16.928 Warning PackageManager 1948  Couldn't clear application caches


---Storage Structures---


#df -ha

Filesystem               Size    Used    Available    Use%    Mounted on
/dev/root                2.9G    652.8M   2.2G         22%     /
tmpfs                   76.8M     12.0K  76.8M          0%     /dev
tmpfs                   76.8M      0     76.8M          0%     /mnt/asec
tmpfs                    4.0M      0      4.0M          0%     /sqlite_stmt_journals
/dev/block/vold/179:9    3.7G     41.2M   3.6G          1%     /mnt/sdcard
/dev/block/vold/179:9    3.7G     41.2M   3.6G          1%     /mnt/secure/asec
tmpfs                    0         0      0             0%     /mnt/sdcard/.android_secure


====== Update on 2nd Aug 2011 ======

**
After days of research, found a few discussion about the error of calculation on available space in Android 2.2 series.  Someone was mentioned on the maximum partition size which might caused this problem.  Thus I have run a test on this, to repartitioned the system partition from 3GB down to 2GB and the market was back to normal...
Any idea on how to solve this?**
I was getting this error because my Gingerbread update was filling the /cache folder.  Deleted it (this probably requires root) and was able to update apps again.