Install Failed because of Insufficient storage? I got plenty, what gives?

[arcarocket]

I tried to install my 10 MB program (which I successfully installed yesterday) on my Dev Phone. I used the command: adb install (product name)

It comes back with this error:

Failure [INSTALL_FAILED_INSUFFICIENT_STORAGE]

I removed the original program from the Settings, I have PLENTY (says I have 963MB FREE) of storage space, what gives?

How can I install this?

[arcarocket]

Ok, I have found that it is only using my INTERNAL PHONE STORAGE and not the USB storage. My Internal Phone Storage has only 5MB it says. How can I get it to save on USB?

[ARMIGER1]

The Apps 2 SD app should do the trick for you. It'll move all your apps to the SD card and allow you to run them from there as long as you either have an ADP or a rooted phone.