"Cannot download, not enough space" when "Phone Storage" clearly lists enough space

I just installed Android 2.1 on my Pandigital Novel. Anytime I try to download an app (via WiFi), I get this error: > Unable to download. Not enough space on phone. However, the phone lists the free space as being 125.57MB, about 25 times the size of the file I wanted to install. I took the APKs I was trying to download and put them on my SD card. I was able to install them to the device from there proving it does indeed have space. What should I do?