There are 3 areas of memory/storage on this phone (assuming an installed external sd)
1) system storage (listed as 1.07 GB)
2) usb storage (internal sd) (listed as 1.62GB)
3) sd card (external sd)
All apps are initially installed in the main system storage but many have the option to move to sd card but it is moved to the usb internal sd storage area, not the external card. but , since its all internal storage anyway, whats the advantage of moving apps to sd? unless of course you are app crazy and fill up the main storage area. does moving apps to the usb internal sd storage improve phone performance in any way?