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They appear and are treated as folders just like the Built-in Storage. I understand that applications can be installed on them though I haven't tried that just yet. Just today though, I hacked the registry and moved the Avantgo folder to my SD Card. Its slower than running out of the standard memory but so far I can deal with it.
CF Cards are faster than SD cards I'm told but I went with the a 256mb SD card so that I could keep the CF slot available for a wireless card. Dell's SD port is only good for memory. It's not SDIO so you can't use it for anything else.
Hope this helps.
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