I've got the same setup. I started off with the 64 x 0 setup and then continued to back off until I was back to the 32 x 32. I've been looking everywhere on the net trying to figure this stuff out and I might have found a couple of useful sites, but I just don't understand this stuff enough to decypher the coding they use. I really like linux and I want to understand it, but I'm kinda limited on free time.
Most of the info I've found gives 3 options:
-->First, you could go through and delete any unused files and programs (like bluetooth and such) if you aren't going to use them. A couple of the users got their Internal Flash (mounted @ /) up to 10+ MB free space.
-->Second, you could somehow copy the entire /usr directory to an sd or cf card and use it as your root directory, or something like that, but it seemed like they were saying that it can cause things to run a bit slower, and once moved, you still can't delete everything or GPE will lose its link to the sd card....not quite sure though.
-->The third method was to use ipkg through the command line and tell it to install the packages to a certain destination directory, but I can't for the life of me figure out how to do that. Most of what I've read is utilizing the ipkg function either through a sync or wifi to download and install the packages over the net (kinda like synaptic does).
It seems like there is so much information on the internet on so many different distros, that it getting difficult to narrow down what you are searching for. I wish I could find a couple of rock solid sites, or even a local community to answer some of my questions.
Feel free to email me if you get a hold of any good info.