The one thing I cant stand about my Desire ???

*Giggles*

You are on the brink of rooting your phone... Keep digging.

HINTS: Apps2SD+

I am not sure about this but believe that contacts will use internal memory as will any emails, at least from Gmail.  I noticed that my memory is slowly going down as my emails increase, looks like I will be having a clear out of mail soon and see if that helps.

Also installing an app and uninstalling it does not appear to claim all of the memory back, only a hard reset seems to be able to do that, certainly helped me.  I reset and then installed the apps again and I have a lot more memory.

Understood - I even realised that I only had 147 Mb to play with when I received the phone, which must have been for a reason!! (Future models?) Is there a possibility that future updates to this phone may enable us to store mail and contacts on the SD card?
   On a related matter, before I understood the system, I had my primary gmail account as the main Mail account then added the same account plus two others to my Gmail app. I wanted to remove it to avoid duplication, but it threatens the 'factory reset' is the way to do it!  Any other way of deleting either a Gmail or would it be possible to delete the main 'Mail' Account without getting too complicated?

Yes I saw that the Desire HD out in UK on October 11th has 1.5GB Internal, which would be a great improvement. If only that was a user hardware upgrade for those that jumped in on the original desire!
   Not sure I understood the references to "going above 1.5 GB in your SD-based apps2SD"  and  "2GB of memory for the Android system" in reference to apps2SD. I haven't found any app more than 10 to 20 Mb on the SD card
  I have used 'apptoSD' a Dolphin Browser add-on, which seems fine.
  I tried to remove one of my Gmail accounts and got the message 'This account is required by some applications. You can only remove it by resetting the phone to factory defaults (which deletes all your personal data). You do that in Settings, under Privacy.

Well that is a step too far for me right now having spent a month getting this phone loaded and setup to my satisfaction!

Another thing to consider, especially for those new to android/smart-phone's (myself included ) is that you can claw back some internal memory by doing some cleaning once in awhile.

Memory hungry Apps such as HTC Mail, Gmail, Maps and YouTube among other's will possibly give much memory back if you remember to clear the Cache and in some cases Data from said App.

Adding deletion of Browser and Call history to your cleaning regime can only help and will possibly give a small performance boost too.

I think the two things that I don't like about the Desire is:

1. The optical tracker sensor. I never use it unless I have too, and I think it's awful. I guess if you use it enough, you'll get use to it. I have to admit, I never like trackpads on laptops/notebooks either, but I wish HTC had used something like the analogue joystick like on the PSP, since the only time I really have to use the optical tracker is with certain games (ie. Radiant) and it's impossible to control. Most of the time I use it accidentally.

2. The other thing that's annoying is the volume controls. It's just too easy to turn the volume up/down accidentally. I wish HTC added a volume lock button/switch.

  I think for me, it would be easier just to delete "retards" and type "regards" than it is to move the cursor to delete and replace the t with g using the sensor Actually... while trying to type "regards" a few times on HTC Notes using SlideIt keyboard, I can never accidentally type "retards" - lol