When you buy an 8GB phone, it is really only 8,000,000,000 bytes, which equals around 7.45GB in reality (for some stupid reason Hard Disk space has always been measured incorrectly like this). Then you have the iPhone OS, and who knows... maybe a part of it is reserved for memory or other apps or something.
So in reality, you are only 0.45GB off from your 7GB of free space.
Hope this makes sense.