iPhone 4 is incorrectly showing storage is full

A little background first. I've been having my phone constantly ask me for my apple id password. I thought it was from a couple of tv shows that I purchased on my phone and later deleted. The videos app shows both tv shows with a blue dot to the left and the phone says I can only play them over WiFI. This is not the issue. Today I clicked on them to see if I could get the blue dot to disappear and to see if that would fix the constant asking for my password. I would start the video, then move the slider to the end of the show and my phone would lock up after exiting the show back into the videos app. After doing this on the second video, my phone warned me that my memory was almost full.

I went to Settings, General, Usage and it showed 0 bytes available. Prior to this I had roughly 4GB free. I did the math on the apps listed and have a total of roughly 7.3GB and according to iCloud roughly 2.8GB of Photos. This adds up to 10.1GB of used storage leaving 4GB FREE. When I scroll down to the videos app under useage it shows NO DATA which makes sense becasue the 2 videos are stored in the cloud, NOT locally on my phone. I can tap where it shows No Data and see both tv shows listed and 0 bytes of storage. I can delete them from here like if they were stored locally but that doesn't change my free space available.

I DID NOT go through itunes to download the shows to watch them. I connected to a wifi signal and clicked on them through the videos app and they started playing.

Does anybody know how to correct this? I have done about 3 hard resets due to the phone freezing after advaning to the end of the tv shows. I really don't want to have to wipe my phone and then restore it if I don't have to. I manually manage my music and mainly don't want to go through the trouble of re-adding it back to my phone. I have a feeling though that this is going to be the only solution.

Any help is greatly appreciated.

Message was edited by: jmreekes