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Since flash memory does not have fragmentation issues, you should be able to go pretty close to the edge of the cliff before you run into performance problems (but my advice would be to walk, don't run, to the edge). I've come close to running out of space on my K2 (audiobooks etc.) and did not have any particular issues.
On the other hand, there have been a couple of large PDFs that crashed my K3 even though I had plenty of space left.
Still, 4Gb is not what it used to be.
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