[liquidsnake]

The limited space is one major flaw of the phone and it almost makes it unusable. That is why I suggest a custom ROM. I use one called Supernova and it is great, it is basically the stock ROM with the internal memory moved on the SD card. With it I have almost 2GB of internal memory and almost 100 applications. The instructions are not super user friendly but it is worth it!

[MichaelJW]

Another alternative is to install Darktremor Apps2SD[1] on top of another ROM such as CM7. This will let you partition some of your SD card as extra "internal" space.

[1]: https://www.facebook.com/note.php?note_id=158809660835039