Earlier quoted context omitted.
Regarding the 196MBs: what's the downside of App2SD?
No real downside other than the fact that apps don't move entirely to SD. All shared libraries must stay in the main storage as well as application parts tagged 'secure' from my understanding. I have my N1 rooted and use App2SD but still sit at about 32Meg free with everything possible moved. At 19 Meg (10%) the phone goes into 'low memory' warning so unless I keep caches cleared I'm always not too far away from bein…
More info @
http://forum.xda-developers.com/showpost.php?p=3981637&p...
http://forum.xda-developers.com/showthread.php?t=852219 (specific for HTC Desire)