I have an iPhone 4S and I love the way pictures turn out on this phone. The thing is that I have taking 183 pics with my 4s and now is telling me that I have run out of space. Now is this nominal or my 4s should be able to handle more than 183 pics?
183 pics is well under 1 GB, so that's obviously not where you're using up your memory. Go into "Settings>General>Usage" to see where you're really using up your memory.
But, if you're taking videos (at 1080P), those can really use up the memory fast. Then, it's time to plug into a computer and off-load.
Check Settings > General > About and see if you still have available space. What you can do is transfer the photos that you have taken from your phone to your computer, or delete some applications that you don't really need. Most of the time, what takes up space are music and videos, and if you have lots of those then remove some so you can take more pictures.