All apps are stored to phone. You might run out of memory if you download a lot of apps, even if you have a large SD card. All downloads, music, videos and media are stored on the memory card. There is no easy way to change it for now.
Resetting the phone increases storage space and speeds up the phone
Hard reset might speed it up. To do a hard reset and format your phone with out losing your files on the card follow the below steps. You will have to re-download your apps and settings. Use Astro to backup your settings and apps.
1. HOLD power button and shut down the phone.
2. Hold HOME and RED POWER down for 25 seconds until you see a triangle with an exclamation mark in it. Keep holding it down even though the G1 logo shows up.
3. Now you can do 4 things.
Home+Back reboot system now – (Soft Reboot)
Alt+L – Toggle log text display – (Toggles between the exclamation and menu options)
Alt+S – apply sdcard:update.zip
Alt+W – Wipe data/factory reset – (Out of Box reset need to re-register.)
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