Do you use an HTC Incredible on Verizon? Been letting it automatically update? Do yourself a favor, click Menu -> Settings -> About Phone -> Software Information, and take a look at the "Android version" and "Software number" – if the former is showing "2.3.4" and the latter is showing you anything lower than 4.08.605.2, and, specifically, 4.06.###.#, your phone is "broken" (by some definition of the word), and needs to be fixed.
The good news is that you can fix it yourself.
Fellow Incredible users are probably intimately aware of the "Application data space is low…" error that has been afflicting the phone, and the 4.06 update for Gingerbread was supposed to fix that. Unfortunately, and predictably, Verizon/Google/HTC screwed something up in the process, and they had to release the 4.08 update to fix the 4.06 update. The really bad news is that the problems in 4.06 actually prevent you from being able to successfully download and install the 4.08 update.
How is that for customer support?
However, after spending about two hours last night with Better Half’s and my phones, I can offer you the following explanation on how to fix it. I am not an Android technician, I do not work for Verizon, and my understanding of what goes on in these little black boxes of mystery is somewhat limited, so, in short, I offer no guarantee, and everything you do is on you. I would strongly suggest following my links and reading the forum threads there before you embark down this rabbit hole.
1. Clear as much of your phone’s cache as you possibly can. You can do this the hard way through Menu -> Settings -> Applications -> Manage Applications and thumbing through each individual app, or you can download something like Super Box, which can go out and fetch your caches and nuke them all in one convenient spot.
2. Clear as much of your apps’ data as you feel comfortable with. For this, there may be specialized apps available, but we went through Menu -> Settings -> Applications -> Manage Applications -> All, and picked them out one at a time. Hit Menu again, sort everything by size, and then start selecting and hitting "clear data". Maps, Facebook, your SMS app, Google+, Google Reader, and other apps like that are typically major transgressors, but be aware – when you delete that data, at the very least, you will lose all of that app’s history, and at the very most, you may lose all of your SMS logs, phone logs, etc. I would not recommend clearing Contacts Storage’s data unless you have to, for obvious reasons.
3. Move all of the apps you can to your SD card, and uninstall all of the other apps you can. You may think you can get away with just this step, but "app storage", "cache storage", and "data storage" all seem to be handled differently by Android, and any one of them can trip the "data space is low" error.
Now comes the fun part. Proceed at your own risk. You CAN brick your phone if you are not careful in the next few steps.
4. Per this thread, press and hold power, select "Restart", wait for the screen to turn off, then press and hold Volume Down and Power. Wait for the HBOOT screen to appear – you will know it when you see it, but it will appear, be non-responsive, scroll some text, and then work. Use the volume button to scroll down to "RECOVERY", and press Power. Once the Circle-With-An-Arrow icon appears (the thread recommends Triangle-and-Exclamation-Point, but we had better response with the former), hold Volume Up and Power until the next option screen shows up. Use the Volume button to scroll to "Wipe Cache Partition", and press Power. It will go away for a minute, tell you it is done, take you back to the previous screen, where you should select "Reboot System Now" (by pressing Power again).
5. In an ideal world, when your phone comes back up and connects to the world, you could go to Menu -> Settings -> About Phone -> System Updates, press Back, and then click on System Updates again, and it would be telling you that it is downloading the new update. This is rarely a perfect world.
6. If that did not work, refer to this thread, and be advised that only the third option worked for us. Go to Menu -> Settings -> Date and Time, uncheck Automatic, and roll the date back to at least the beginning of November. Screw around with the phone a little to let everything settle out, then repeat the System Updates, Back, System Updates sequence above. It should be downloading now.
7. Once downloaded and checked, it will ask if you want to install; go ahead and tell it yes. It will start the countdown – if it stops at 8 and says "Rebooting now", and no popup appears, it broke. Press Home, and start over at step 4. If it stops at 7 and says, "Rebooting now", a popup should come up indicating it is actually rebooting. The reboot process takes time (5-10 minutes), and until the normal home screen comes up again, do not worry about your phone. Once that home scree comes up, it will either tell you that it successfully updated, or that you do not have enough memory. You do have enough memory, but that is the 4.06 problem that we are trying to fix. Go back to step 1 and go through it all again.
Yes, you do have to do the Wipe Cache Partition thing every time you attempt to install the update. Yes, we had to change the date every time we were trying to get the update. And, yes, it is a little frightening dorking around on the internal programming guts of our rather expensive phones, but so long as you stay to the proscribed path, you should emerge unscathed. We did have one point where the Triangle-and-Exclamation icon stayed up a little while longer than we would have liked, but trying the Vol-Up-Power button sequence a few times made it chug along.
Why do this? Well, we have not gotten the "out of space" error since updating, and it is entirely possible that the 4.06 update will prevent you from installing any further updates. Alternatively, if you are reading this before the 4.06 patch has been applied to your phone, I would strongly advise against letting it, and see if you can just jump straight to 4.08.
Ain’t technology fun?
Added HTC Incredible "bonus": having your camera store its pictures on the SD card is counterproductive. Your phone came with a 2GB removable SD card, a 1GB onboard memory chip (split 250MB for Android and 750MB for whatever apps you want to install), and a 6GB Embedded Multi-Media Card. This card is basically invisible to everything except your camera, onboard music players, and the Android system itself, so you might as well put its storage space to use for something.