http://www.ieenews.com/tricks-increase-iphone-storage
http://www.ieenews.com/forums/topic/add-more-storage-to-an-ios-device/
http://forum.ieenews.com/viewtopic.php?f=19&t=4493
Our Camera Roll is taking up 867MB of space on our iPhone. That's 150 photos, 3 panoramas, and 6 videos. If we hadn't turned off Photo Stream we could easily copy these images on to our Mac (we'll discuss various ways to automatically back up images on the next slide).
However, it is likely that you have images on your iPhone that you had no desire to keep. Perhaps, like us, you often take screen shots of train times when you are commuting. There is no need to keep these shots.
Similarly, if you've been using Burst Mode you may have hundreds of identical images you really don't need taking up space on your iPhone. Go through and delete photos and videos that you don't need.