That's storage, the equivalent of hard disk drives on desktop computers. At this point, desktops commonly have hundreds, or even thousands, of gigabytes of storage.

That's RAM, commonly called "memory". The N900 has 256 MB of this, plus an additional 768 MB of virtual memory.

Virtual memory, also known as swap, is part of the 32 GB storage used to hold the overflow from the 256 MB of RAM. Applications can't be run from virtual memory, they need to be swapped back into the 256 MB first, and virtual memory is slower than real RAM, but at least it avoids "Out of Memory" errors.

In short, no, the N900 isn't besting modern desktops with its specs. However, it does well for a pocketable device, and it can match desktops of not too many years past.