Rom toolbox has it set as the external sd card for installs but I still cannot move apps to the external card yet. Is it thinking that the external option is really the internal sd card inside the phone?
I can explain it but I don't have a solution for you. Android has specific rules for where it installs apps. If the app has a specified location, that takes priority. If it is not specified in the app, then the default install location is used. Android has 3 identifiers for app storage location:
0 = Internal
1 = Auto
2 = External (sd card)
If 0 is set in the app, then it can only be installed on the internal storage regardless of the default install location. Widgets, services and apps that periodically poll need to be in the internal storage to run correctly.
Similarly the phone itself can have a default install location set so if the app is set to 1 (Auto) then it will direct the app where to be installed. The only thing you must remember is that 1 is not an option for a phones default location. If the app were set to Auto location and the phone was to, it wouldn't know what the default was.
Out of the box, all Android devices used to come with the default location set to 0, so if a widget or service was set to Auto, it would go in the right place. Apps that could be moved can always be moved to the sd card manually.
Anyway, newer phones that include large amounts (by current mobile standards) Like the SGS2, Exhibit (and my other phone, the Captivate) often partition them so that you don't have a huge amount of system memory that wouldn't be accessible for file storage. On the Captivate (and I am assuming it's similar with the Exhibit) Samsung has a 2 GB partition for the system and the remaining 14 GB partitioned and recognized as an sd card by making its mount point /sdcard.
Therein lies the problem. The path to external storage within Android is /sdcard so apps that are installed to external storage will be there, which is the internal sd partition, not the removable sd card. On the Captivate the path to the removable sd card is /sdcard/sd_external.
It may be possible to redirect the external location to the actual removable sd card, but it would involve editing the init.rc executable script file which may be incredibly dangerous (or not, I frankly don't know). Or, you could actually change the mount points of these devices so the removable sd card was mounted as default external storage, but that would probably require a custom rom to do.
Like I said earlier, an explanation but no solution.