It was a total surprise to find there is no hardware support for this phone in New Zealand! 2Degrees CSR said to ring LG. LG said that the P692 is only supported in the UK, not New Zealand. I got back to 2Degrees, who, after much consideration, said something along the lines of "We don't offer any handset support, perhaps you should ask 'a phone repair company' if they can increase the internal storage."
I am very surprised and disappoined that 2Degrees would sell a phone for $300 with no New Zealand support.
The actual lack of memory issue is another thing. I'm going to try Mauricio's suggestions in this forum:
In this topic, I'd be interested if someone from 2Degrees would tell me what their policy is regarding support for handsets they release!