Erronous Low Data Space Error on Droid Incredible I've see this question asked a lot, but I haven't seen any real answers.

I'm getting the low application data space error, but I have 440MB/750MB free on my internal storage.  

With more than 50% free how can I be low on space?
Is there any solution to this other than deleting things?  It seems that the error goes away at around 460MB free, but it's ridiculous that I would have to maintain that much free space to now be "low".  

Any thoughts on what I can do about this?
This error is not just for the total storage, it is also for specific "mount points" like /data/data, for example, where the applications on the device store their data. If this mount point becomes low on space, because it is not given access to "all the storage", then you will receive that low space message. You can uninstall apps that you no longer need/use or go in to the Settings -> Applications -> Manage Applications and clear the data for apps that are using a lot, or you don't use often.