Just did that and it's still doing the same thing. is there antrhing besides pushing the avaliable offline switch that I need to be doing?
As long as you have enough space free, tapping the Available Offline button should start things syncing.
It's odd that you have 1GB free and aren't able to sync over both wifi and 3G.
Could you try a soft reset of your iPhone by holding down both the power and home buttons for 10 seconds (until you see Apple logo). Sometimes this fixes problems such as these. Keep us updated!