help me please many problems after removing applications

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I am using Samsung i699 (android 2.3.6) in China, They preinstalled so many suck apps. After I rooted and removed a bunch of apps including system files, and then every time when I power on, it displays "Low Storage Space there is not enough storage space available to complete this action, please clear some space and try again" Before remove some system files such as applicationsprovider, kies, kieswifi and etc... it never had any problems. So here I have 2 questions:

1 How can I resolve the issue?
2 If nobody knows, I want to restore factory default. When I press "restore factory default", it just restores my settings, or restores all the apps and systems files I deleted?

THANKS A LOT FOR YOUR HELP

When you click on Factory reset, the phone will be just like how it was when you first turned it on.. It will have all the samsung pre-installed apps.. But make sure that you make a backup of your data before doing this. All user data will be deleted during a factory reset.