Heres what they say about how the memory is controlled & about the speed increase over using SD or CF:
Dell Axim X5 128MB Upgrade
We have now released a new stacked RAM upgrade for the Dell Axim X5 400Mhz Advanced unit.
We can add 64MB to the unit for a total of 128MB. 64MB is managed by memory manager and 64MB is setup as our Hi-Speed internal storage card called T2T Disk.
Using our T2T Disk instead of a removable storage card does have several benefits:
Speed. Our T2T Disk access speed is up to 100x faster than SD or CF since it is SDRAM, not compressed and is accessed directly by the CPU.
Secure, since it can't be lost or misplaced.
Programs can be installed to the T2T Disk leaving conventional memory free for operating RAM. The user doesn't have to worry about a program being installed on one card and needing access to another card that has their data.
http://www.pocketpctechs.com/delx5up.asp
The upgrade costs $99 + shipping.
The upgrade does require a modification to the ROM and our proprietary driver.