Why do I only have 304 MB of available storage space?
I will try to answer my own question here. The short answer is: get a ROM that just works! (No, not a room, a ROM! Get a ROM!)

Here is the same screenshot image of the SD &amp; phone storage menu, this time with a ROM called SuperNova. You can find an installation guide here.



As you can see from the image I now have 1.86 GB of internal storage space. No additional apps have been installed yet, except for some apps that came with the ROM, and the stock HTC apps that came with the phone.

How-to

You will need root and S-OFF before you continue. It's also possible to install this ROM with S-ON, but it will require some additional steps, for more details see the developers website. You will also need a custom recovery like Clock Work Mod (CWM) or 4Ext Recovery. The latter is recommended. You will also need to flash stock HBOOT, if you don't have that already. You will find the stock HBOOT on AlphaRev website.


Go to the download page of developers website.
Download "SuperNova 2.4.0.1 Extreme ROM". You will see at least three mirror download links. Here's one direct link to Dev-Host.
Power off the phone.
Enter HBOOT on the phone.
Enter recovery (I used 4Ext Touch Recovery).
Format and partition the SD card with one Ext4 partition and one FAT32.
Power off the phone and take out the SD card.
Mount your SD card to the computer.
Copy the Supernova_2.4.0.1_signed.zip file to the SD card.
Put the SD card in the phone.
Enter recovery and choose "update from zip".
Select the file above. This will now flash the new ROM.
Reboot the phone. First boot will take longer time than usual.
When you get to the setup wizard, skip setting up a Google account.
Reboot the phone. You will see a blue LED go and off. This means Data2SD is loaded and working.
Now you can setup your Google account and Wi-Fi, and what not.


Remember, complete installation instructions can be found here. That web page can be overwhelming, especially for newbies, which is why I tried to put it in a more condensed form here.

If you run into the "Download was unsuccessful please try again" message when downloading apps, this means that the app you're trying to download is too big and the Android Market cache is too small. This problem is covered in the FAQ at developers website, it's question 28.

The suggested workaround involves using Scriptmanager app and a script, and this must be done every time you reboot. But I have found that installing the latest version of Play Store (replacement for Android Market) manually solves the problem permanently.

Here's a short how-to on that too.


Download the APK file for Play Store.
Connect the phone to the computer. If prompted, choose to mount as
disk drive.
Copy the APK file to the SD card.
Disconnect the phone.
Go to menu, settings, applications, and enable unknown sources.
Start a file manager app (I used ES File Explorer, but ASTRO is good
too).
Browse to the file (/mnt/sdcard/) and tap it to open. You'll be
prompted if you want to replace a system app. Tap OK to continue.