As konttori mentioned: there is 64MB ram. This is for the active applications. Thus freeing up the home folder will not free up memory for funning more active applications simultaniously.
For this you should use a swap file on your mmc card. This works (perfectly?) on mine and allows me to work with multiple browser windows and other applications open side by side.
See this thread for activating swap: http://www.internettablettalk.com/fo...2&page=2&pp=10

If you want to free up flash memory for new applications and or emails and stuff, you could just use the mmc card for your large files like videos and mp3. For ease of use, you could possibly free up some flash space by making the .videos and .sounds directories in /home/user/Mydocs/ symlinks to the mmc card.