Update: A commenter suggests using InsuFixer which simplifies this process greatly.

A few weeks ago Google Play started throwing an error the error "Insufficient storage available." I looked at my phone storage and saw ~4gb available. Annoyed, I googled around for fixes. Most forums suggest clearing caches, repairing permissions, or deleting random things out of /data/app. Of course, none of which fixed my issues.

I decided to poke around with adb shell to see what was going on and discovered a great tool that ships with the SDK called monitor.

Running monitor gives a live view (LogCat) of whatever is going on while the error condition is happening.

I assume you don't have android sdk on OS X so here are the steps, you can watch them too.

• brew install android-sdk
• android
• Select and install the defaults
• Connect your phone to your computer with a USB cable
• adb shell and authorize your computer to connect on your phone
• exit
• monitor
• Once the monitor app has started, visit the play store on your phone and try to install the misbehaving app
• Keep an eye on the LogCat for error conditions or strange output
• Resolve the errors

For me, it turned out there was a permission error being thrown in /data/app-lib. I resolved it and my app installed successfully.