One of the biggest pains about doing applications for Windows Mobile 5 has been that the .NET Compact Framework (the runtime for .NET applications) had to be in the main storage area of the device and there never seems to be enough space there no matter how much RAM the vendor put in. Well, that’s been fixed with .NET CF 2 SP 1.
Here’s the blurb about the release including a link to their team’s blog:
Microsoft .NET Compact Framework version 2.0 Service Pack 1 has been released as a download. The service pack was driven by customer feedback and includes stability improvements, new debugging features, extended platform support, and new developer functionality. Most notably, users can install the runtime to removable storage—which especially useful for devices that ship with limited storage space. For more information see the .NET Compact Framework Team Blog