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Ok, first thing you should do is a hard reset. You don't want any of the crap from the last owner. Besides, it's better to start with a fresh device.
To hard reset click Start / Accessories / Clear Storage and follow the steps on the screen. Be sure to have your device charged and plugged in when you do it.
Once the hard reset is done, check the free memory again and I expect you'll find 12MB free or so.
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"I have no special talents, I am only passionately curious" - Albert Einstein
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