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Besides upgrading to froyo there's another way to transfer apps to sdcard.

If you are like me and feel too lazy to upg your os just for this then search the Market for an app called Link2SD. It's available for eclair (2.1) too. the only downside is that you need to partition your card manually and you need to reboot in order too see and use the app you just transfered. Bit of a fuss but simpler than upgrading to 2.2

Good luck
 
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