Out of phone storage space on x10i

On the Sony Experia X10i, with Android 2.3.3 (Gingerbread) I am currently getting the message
"Phone storage space is getting low."

So, I did a backup (see HERE) then a factory reset to clear all data. Maybe some of the slowness issues on the X10i will be resolved. 
Note: Free apps may not be automatically reinstalled. I have not figured out why.

Here are steps for the factory reset.
Step 1: Start the reset
On the X10i, Left click, and in menu choose "settings".

Choose "Factory data reset"

Do not choose "Erase SD card", because all my photos and backup is there.

Click "Reset phone"
Click "Erase everything"

The phone will power off (shut down)

Step 2: Start the x10i
The phone will restart, press the middle button and unlock the phone.

Choose Language,
Choose step 2/6 and change the date and time.
Choose step 5/6, set up the google, email account. What about Sony Ericsson sync (not working)?


Sony Ericsson sync was asking to select your country, but listed only 8 names and didn't list mine. It then says service is discontinued


Click in step 6/6 click "Finish".