Ok, so I did a bit of an experiment to figure out how the 'other' storage was 'clearing' itself... or wasn't cleaning itself... whatever the case was and found something really interesting... The first image was done mid-day and showed 644MB left in internal storage - I then power cycled the phone (2 minutes later checked the system again) and was up to 965MB - just from the power cycle.
The third cycle was after I was home and popped the device on the charger for a few and power cycled it again... Sure enough, I picked up another 300MB for a grand total of 1.26GB of open space. I didn't shoot the deeper screen shot, but it was the 'other' memory amount that was changing. A few simple power cycles doubled my free space.
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Now, don't get me wrong, this isn't a "great" thing as far as the amount of storage space being cleared, but it is at least showing that space is cleared on a power cycle. I'd be interested to see how many people get the same results on a few power cycles them selves.
Also, not to start a whole new issue, but anyone notice the % of battery drop between my 12:17 and 12:19 screen shots? It took almost 8% of the battery when I reset the device - so is that bad power management? a poor indicator? or just plain buggy software? Just wondering...