He knows which is which. He also knows how to move items, He's complaining about how the apps save things in internal storage instead of external, as with our previous phones.
V, yeah, most apps are hard coded to use /sdcard to refer to the physical SD card. The easiest thing would be for someone to write a patch for the system pricks to change the mount points of the internal storage and the SD card so that /sdcard points to the SD card, and /internal points to internal memory.
The Galaxy S phones had the same issue when release in Europe over 6 months ago (although due to a different naming scheme, the principle was the same - sdcard was no longer actually the sdcard).
I'm really not sure why Motorola did this, but some apps can be changed. For example, in TiBu, go to Menu soft key --> Preferences --> Backup folder location - when the dialog box pops up, use the back key to move around in the folder tree, until you find where you want to save backups to.
Other apps can be configurable as well, but i they are not specifically configured, they may default to just using /sdcard - which here, obviously, is incorrect.
For the camera app, go to menu key --> Settings (gear icon) --> storage location. Here, SD Card really means SD Card, and internal memory means ... you get it. Changing this setting should affect the camcorder as well.
What other apps?