I have just 're-flashed' the v1.1.1 using the software updater. I made a backup (to the phone, not to PC) and restored it afer doing this and got my apps back. Then the application manager let me install the new PR1.2. Thanks for the suggestions about that method.

Astute- it worked for me give it a try- no need to back up to PC- just run the n900's own backup. It keeps all your pics and music and stuff on the general hard drive area, and creates a list of what apps and programs you had installed then it automatically re-installs them for you if you so wish.

Funny thing is- I think I had about 53mb free rootfs after doing that- and before I re-flashed I had deleted a few extra things just to see if it worked, and it wouldn't at 60mb free space. So, some app or other must be doing something.