LOL I thought I would get massively flamed for ditching root!
So what I did was repartition my memory card and set both ext to 0. After that I followed jcase's downgrade to 1.5 method. it got me my whole SD card back and after it booted up I immediately got the notification for the OTA.
BTW as far as a2sd goes. I have all the apps I did when I was rooted and I still have 108 mb of free space with the OTA. With a2sd I have around 140. It just wasn't worth it because I had a class 2 card and would get FC all the time because it wasn't fast enough. I moved dalvik back to the phone, but the lag I had was horrible. I'm not noticing a huge dip in speed without OC, but I do miss cache cleaner and autokiller.