According to your mtdblock6, you are actually using 32/32
Well 3.3.6-pre1 is compiled with gcc3.3.2. You will need install compat libs, to be able to run other software, that are compiled with gcc2.95
I have recompiled some Packages with gcc 3.3.2http://teletubbie.hentges.net/feed/
For your place problem there are Solutions to Install software to ram or an ext2 card. You could also take an ext2 card and move home and opt to that and symlink them to /
This is a FAQ Issue and you should find a lot of howtos about.
Here is a good starting point:http://www.linux-migration.com/ch05.html
It is for OZ 3.2 but it works with few modifications with OZ3.3.6-pre1 too