[Captivate Q&A, Help & Troubleshooting] littlewierdo:
Im sure this is already a known issue and since it is late for me, Im going to be brief (hopefully).

It seems CM7 doesnt default to installing apps to the 2 GB partition on the internal storage partition.

What I did was flash to stock, master clear (via Odin 1 click) (so phone is completely empty at this point), copied TB folder of backed up apps and CM7 files to my phones' internal memory (the 13 GB partition) (which totaled 500 MB), flashed CM7, installed latest nightly (5/3 I think), did the 4 wipes (Dalvik, cache, factory reset, battery stats), and flashed Gapps.

When asked which apps I wanted to install, I hit select all and went thru the 15 or so market prompts to install them all (GMail, Facebook, Twitter, etc).

During the setup process (the screens that appear just after flashing Gapps), at the very end, I unchecked the option to 'restore my phone settings' (the option that when enabled, starts downloading all your apps and installing them automatically).

So, at this point, other than the total of 500 MB of CM7 setup files and backed up apps on the 13 GB partition, the phone is empty.

Using a freshly installed copy of TB from the market (it had no settings to 'restore' from), I began to do a restore of my apps and started getting 'out of storage / memory' errors. Weird.

I then hit up the market and decided to download a few apps and see what happened. I received the same errors (unable to install - out of memory / storage space).

I then re-flashed CM7 (repeating everything I did above) so that the phone was back to stock and completely formatted (with exception to the 500 MB of CM7 setup files and TB backed up apps) but 'this time', after installing Gapps, I left the option checked to restore my apps automatically to see what would happen. After about 30 apps or so were installed, I started receiving the same 'out of memory' errors.

After some digging around in the file system, it appears CM7 is installing apps into the 'system' partition instead of the second 2 GB partition where apps are supposed to go by default.

Since the 'system' partition is supposed to be limited to just the OS, it seems to be around a 500 MB partition (and android uses about 350 MB of that) so after a few apps get installed, it simply runs out of space.

I have since done a complete fresh install (again for the third time this morning) and put the apps on the internal (but the system says external) 13 GB partition in order to get widgets and some specific apps to function correctly (apparently, nothing really works if you put them on the real external eMMC card).

I know this is really long winded, but I wanted to avoid the 'noob' comments I know I would receive if I didnt explain everything.

For those that dont believe me, flash to stock and do a master clear and restore your apps with TB without changing any settings and you will have the same experience.

This really is a bug with CM7. It should default to putting apps into the 2GB partition. It left me scratching my head trying to figure out what was going on (including why I couldnt use widgets or open certain apps when I tried to restore to the external memory card only to discover that if they are on the REMOVABLE external SDcard, they have problems and the confusion of the 'real' external card versus the non-removable external memory). If apps were defaulting to the 2 GB partition in the first place, none of this confusion would have happened AND I wouldnt have gotten 'out of memory / storage' errors initially.

As a side note, I still dont know how to get the apps on the 2 GB partition, everytime I change the setting to use 'Internal', I get the same 'out of memory / storage' error (leading me to believe it is trying to dump them into the system partition). So for now, I have everything on the external (but really internal) 13 GB partition.