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Posts: 3,401 | Thanked: 1,255 times | Joined on Nov 2005 @ London, UK
#50
If you boot from MMC, your apps will be installed in MMC.
If you boot from internal flash, your apps will be installed in internal flash.

Simple, really. Once booted from MMC, you have no access to internal flash (ie. the flash on the device motherboard).

The second option you listed, assuming you cloned the OS to MMC card, on partition 2 using the ext2 filesystem....