I fixed this without having to do a full restore.
Basically, there's a corrupt app that needs to be removed. So this is what I did:
1. Unplug the iPad/iPhone from iTunes
2. Remove the app or apps from your device that you installed since your last sync. If you like, you can do this one by one, starting with the most recently installed app and then work backwards until you find the offending app but you'll have to go through to step 6 in order to find which one it is.
3. Once you've removed the suspected offending app, restart your device
4. Shut down and restart iTunes
5. Plug your device into your Mac/PC
6. Select your device from the devices list in the left column and have a look at the coloured file allocation bar chart at the bottom of the window to see if the massive "other" has reduced to normal size. If it hasn't, return to step 1 and start over. If it has, move on to step 7.
7. Sync your device.
8. Re-install the apps that you removed that you want to keep. It's possible that the offending app won't cause the same problem and that it probably only corrupted during its last sync. Maybe by an interrupted sync or something.
Hope this helps