You should really think about using DarkTremors app2sd script before moving any of your apps. It will free up SO much of your internel memory. CM6/CM7 (rooted users only)
First make sure you always do a Backup of your system before trying anything new!
1.Move ALL your apps to your internal memory.
2. Make sure your sd card is formatted using CWR or RomManager with the ext2 partition.
3.Go to CyanaogenModSetting>ApplicationSetting>(check) Allow application moving. Then leave install location on Auto.
4. Download
http://www.darktremor.info/files/a2sd/dtapps2sd-2.7.5.3-beta04-signed.zip and place this zip on your SD card. (Put it on the first screen that pops up for noobs
)
5. Reboot into Recovery and install Zip. Then reboot phone.
6. Dont freak out when your widgets and apps look like they are gone just go to the market download: A2SDGUI - Darktremor A2SD then run it.
7.Give it SuperUser Privledges then it will tell you its gonna blow up your phone ha Jk Just ignore the notice and press ok.
8. Make sure the green light is on under "Apps are on SD" then go to the "LowMem" tab and click on Aggresive.
9. Go to the "Dalvik" tab and click on "Dalvik Cache on Sd-Ext" then press "Move".
10. Your phone will reboot and it may take a bit to boot up because it is moving things by itself. But when your phone comes on all your widgets should be back and all your apps should be in your app drawer. Then go to your setting and look under Sd & Phone storage and check out the Internal Memory!! Woot woot.
*
props to DarkTremor for this awesome hack.