I've found that when you install an app when running CM7 it installs it onto your NC's internal memory.
When in CM7 if you go to Settings / Manage applications / you'll see tabs across the top of the screen. The 1st tab is all your apps and you'll see the internal storage memory that is used and how much is left at the bottom of the screen. If you select the SD Tab at the top, again you'll see at the bottom of the screen how much space is used on your SD card. When on that SD Tab scroll down through the listing of apps and any app that does not have a check mark by it is still on the internal memory.
Select an unchecked app and you'll go to another screen which gives you the option to move that app to your SD card. Once that is complete you can select to move it back to your "phone" (ie internal memory), if you so choose. On that screen you can also force close an app that won't shut down or clear it's cache.
Back arrow to the listing of apps under the SD Tab and continue to scroll until you find another without a check mark. I've successfully moved all apps to the SD card BUT I wouldn't recommend moving clock or file maintenance programs from the internal memory (As they run better there).
This should free up your internal memory as you fill up you SD card.
I had to reinstall CM7 at one point and that forced me to reinstall all my apps and move them each to the SD card again. So this time around I'm leaving most of the apps in the cloud until I'm ready to download and install and use them.
Hi, I have another question about the SD card... if I partition the SD card with 10G for the boot/Nook side and 20G for the CM7 side (non boot) - Can CM7 share or use any part of the 10G boot/Nook side?
I understand that the /emmc is the internal memory of the Nook and that I could put music and photos there, but I would like more room than /emmc offers. So I would like to use the SD card... it makes sense that the Nook could not see or use the CM7 partition but shouldn't the CM7 OS be able to use all of the SD card?