With a little faffing it can be fixed quite easily by Rooting, Installing Clockwork (not required but useful) then partitioning an External SD Card and using Link2SD...this will allow you to link the measly Internal storage to a partition on the Ext SD card (I created a 2Gb one) Then you can move many of the internal storage apps to the new partition freeing up some space...
I've now got 215mb free space on the internal storage for any pre-installed apps and any new apps are installed on the Ext SD Card 2gb partition. Once done the process is automatic. Newly installed apps are installed automatically to the 2Gb partition on the SD card.