Here is a link to settle the expandable memory debate
http://windowsphonesecrets.com/2010/...vable-storage/
In a nut shell there is expandable memory though one should more think of it as permanent. Once it is in everything is treated as though it is one in the same. From a
basic user perspective this far beats the alternative of having to keep track of where your apps/contacts/music are stored, IMHO and I think it is a simple way to make up for manufactures who don't want to go all out with internal storage to keep the price of the phone down.