With the N800, if im getting 2 new SD cards (one for each slot) to replace the one that came with it, do i need to transfer from the old card to the new card i bought......basically does the SD card that comes with the N800 have the OS and stuff on it, or is it stored internally?!?

Nothing on the card.

The N800 also has some internal flash memory that has nothing to do with either SD card. (256Mg?? Don't remember exactly how much.)

ALTHOUGH: if you read up on it... you will find people claim that you can boot from the SD card instead of the internal memory and get a good speed increase. (It seems the internal memory is formated as a "compressed" file format. So it has to decompress everything as it runs.)

EDIT: Actually I could be wrong. I don't THINK there is anything on the 128Mb card that it comes with. I never looked. I bought an 8Gb card and installed it immediately before the first boot. (And have the Navkit 2Gb card in the other slot.)