Sounds like you're missing all the posts that say that in order to update OTA you need at least 45mb free in rootfs. If you have a bit of a poke around the forums you'll find suggestions for generating more space there if you need it. I would suggest you start by disabling any maemo.org repositories as they're goofed tonight anyway.

Good luck!

Edit,Holy Post batman! Rob1n beat me to it.
Though now the wiki isn't loading?