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Programs tend to write information as they are being installed and then delete it once installed.
Generally speaking, programmers build in a fixed amount of disk space that the program needs for installation, less than that and it won't install.
Having so little space left on your card will tend to cause that problem even though the final used space of the program is less than the space available.
That explains why you can install to you CF and then move it to your SD.
So, the simple answer is, Yes, a larger card will solve the problem untill you reach the point where it is nearly full again.
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