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This is the Old Apps 2 SD method for Cyanogen Mod 6.01 on HTC Hero which will install apps to the Ext2 partition of your SD card (tip – if you do not know what that is then you have alot to do first – you need to `root` your phone to give you complete control / super user / administrator rights.  You will need to flash certain ROMS for the Radio (what makes your phone send calls over mobile networks), boot rom (hold down `power on` and `home` on HTC hero when you switch it on to see what it is) and flash an actual android ROM / Operating system (one for your specific phone / hardware).  Cyanogen is by far the biggest unofficial ROM (as opposed to ROM`s released by manufacturers which are often much slower to be released and not as many functions as `rooted` unofficial ROMS) –  with versions for most phones , indeed spawning various offshoot ROMS.  HTC Hero memory soon runs out once you start installing apps from the Android Market.  Apps are installed to the limited HTC Hero internal memory rather than to the SD card which is used for photos, videos, music etc.  The SD card is formatted in FAT32 which is MS Windows compatible, hence the ability to plug in the phone to a computer and get your photos from the SD card.  some folks figured out a way of putting further partition on the SD card, namely a small swap partition as used by Linux which android is based on and an Ext partition (Linux again) which by using some trickery the phone can be fooled into thinking is extra internal memory for Apps (doesnt work for FAT32 for technical reasons).  This old `apps 2 sd` method was done away with in Android ROM version 2.2 and higher (Cyanogen mod version 6.01 is based on Android 2.2 `Froyo`) and replaced with an Android apps 2 sd version which copied parts of programmes / apps to a secure folder in the FAT32 partition but to be honest it is not that useful for the Hero as the internal memory still fills up……….so found the following and can agree with the author it work fine on my Orange UK rooted Cyanogen mod 6.01 (Android 2.2 Froyo) Rom with latest radio and Amon Ra boot , google apps and Fly kernel all flashed.  Only thing is as author states I still eventually got `low memory message` after 180 app installed but can be solved by opening the terminal emulator on the phone, typing su to launch super user and following below to move the dalvik cache to sd (darktremor script attached here is run just like flashing ROM but doesnt automatically move dalvik cache along with apps so follow below to do that as it is the dalvik that is causing low memory)

Learn to root your phone here old apps 2 sd which works with cyanogen 6.01 (Android 2.2 Froyo)

I was able to get the darktremor a2sd method working on my phone with little effort. Feels really good to be able to install all the apps I want now. Hard to believe they took this feature out of CM6. 

The only things that weren`t clear in the instructions above were:

1. How to partition the SD-Card: I think the directions above assume you are using RA recovery and it seems you can repartition cards using that, but I was using clockworkmod, so I opted to partition the card with ROMManager (there`s an option for it after you enable Advanced usage). It was super easy to do but I am still not sure if its ext2 or ext3, and you can`t seem to create a partition greater than 512megs (still a lot).

2. Moving the Dalvik-cache: they list 4 commands for this and the way its written it kinda implies you should run them all. Really though you should only run a2sd cachesdreset (move dalvik to sd card and clears contents of dalvik-cache).

3. After all was said and done I wasn`t totally sure that everything worked even though I had more mem. /data/apps and /data/dalvik-cache were linked to /sd-ext but /data/data was not and this dir continued to keep growing as I was installing apps (it seems to contain your user data). For apps that store a lot of data (you can look at how much data each app is using with manage applications) i ended up creating symlinks manually to /sd-ext but I don`t recommend anyone else do that as I don`t really know what I`m doing in the world of android. 

Anyways, in conclusion, its definately worth doing until 6.1 comes out.