What version of Android does it run? I have a similar budget phone (ZTE Blade) and this was an issue under 2.1 (I would get warnings about being low on space) but I haven't even thought about it since I went to 2.2 a while ago. I believe most larger apps install themselves automatically to the SD card now? Enough do it that it doesn't bother me anyway.
I actually have no idea how much internal space my phone has, which I take as evidence that it's not an issue for me. Google tells me it's got a shockingly small sounding 150MB of internal of memory.
Blade has 512 MB of internal memory, but it is partitioned into /system, /data and /cache. Both system and data are somewhere around 235 MB each and cache is the rest.
Android doesn't help that it warns you when you are below 10% of free /data. On Blade, it is still 23 MB.
Just out of curiosity, what are you using for 2.2 on Blade? AFAIK, the official version is still 2.1.
I actually have no idea how much internal space my phone has, which I take as evidence that it's not an issue for me. Google tells me it's got a shockingly small sounding 150MB of internal of memory.