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Sorry guys, I have a fix for this and I didn't share. If you want to move your apps to SD, flash vampirefo's 2.0.9lv kernel. It allowed me to move things like you are supposed to.
No idea, but Vamp nailed it.
it seems to work fine with crapkernel and stock froyo
[TheAndroid];2596994 said:Remember though, not everyone has this problem...