It looks like you may have the OS cloned to the 2gb internal already.
I partitioned my internal to 1gb ext2 and 1gb fat, loaded every app I though I might possibly use and filled up less than 350k of ext2.
So I repartitioned with .5gb ext2, 1.5gb fat.

I used pb's http://www.internettablettalk.com/fo...ad.php?t=20534 for partitioning.

If you check your memory under the control panel and details how much is shown for each - device, internal card, external card?