Most cleaning apps don't do a very good job. For what it's worth, I use a combination of AppMgrIII and Droid Optimizer.
The 98% number tells me the phone has accumulated a lot of data, and that a good cleaning is needed. That also would explain not being able to download apps.
You should also realize that if an app says in an app store that it's say 20mb, it'll need more space than that for data files and such. There's no formula per se, but I like to move apps to the SD card when possible and save at least 10% of internal memory, just in case.
The AppMgrIII app will also tell you if any apps can be moved to the SD card, which should free up some much-needed space on the phone. You can browse your appropriate app store, but stick with the well-reviewed apps, whenever possible.
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