I believe I found a solution! I'm surprised no one else has found this... maybe it's just my phone. Here we go:
1. Back up any important data... I'm not sure what the files we're about to delete are, but I found no negative impact since deleting them, but be safe. Always.
2. Through the main menu, go to: Office>File Mgr.>Phone Memory>logs>Eng>0ds
3. There are a butt-load of .xml files. Mark All.
4. This may take a few minutes to select all (since there are a lot... the first time I selected all it took about 7 mintues, since there were about 18000 files)
5. Once all are selected (you'll know because fo the check marks), select DELETE.
6. It will ask you if you really want to delete those 18000+ files, confirm it.
7. This step took me about 3 hours... but once they were all deleted, I had about 150MB free space!
8. Good luck, be patient, make sure your phone is plugged in, maybe do it overnight.
I faced the same problem. After trying to solve at all levels and seeking help from wherever i possibly could, somehow managed to go this far which I would like to pen down here if it could help others.
go to control panel
then, data manager
then app manager
then download apps
then nokia.mobile option
then scroll down to clear privacy data
then clear cache,cookies, history
I hope this will work for you as well.........all the best