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This is flash memory. Like all flash, the number of write cycles is limited. I honestly don't know the limit, but 10,000 would be the lowest reasonable number of write cycles. This applies to memory cards as well, but of course memory cards are disposeable. You only get one built-in flash.
Some people have reported that if something goes wrong while writing to built-in storeage, the memory occupied by that file can be permanently lost. This is very believeable. It happens to memory cards also. The difference is that memory cards can be reformatted. The built-in storeage holds the operating system. (You get access to the left-over memory). Reformatting this memory would wipe out the operating system, which is obviously not a viable option.
Someday, Microsoft will release an upgrade to the OS. Dell may decide to offer a program to re-flash the ROM so you can have the upgraded OS. This program, should it be offered, will probably be larger than today's OS. If you decide to upgrade, you will probably have less built-in storeage.
Finally, programs that wake the Axim up (Pocket Informant, Agenda Fusion, alarm clocks) should be stored only in RAM.
My recommendation -- wait until you are pretty confident you have a large program that you want to keep (like, for example Lectionary). Soft-reset your Ax to close all apps, make sure no alarms are due. Charge the battery, and plug it in to the AC adaptor. Then go ahead and install the program into built-in storeage.
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The world may not be perfect yet, but the Axim is (almost).
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