I'm pretty pleased with my 770 too but have to agree that it is lacking memory. Having previously been an 'early adopter' for Windows Mobile devices this was an extremely common complaint with those too.
I guess I expected Linux to be different. Maybe it will be if the lack of memory is not a hardware thing but a case of optimising the software to make better use of the existing memory.
Microsofts general answer to getting software to work faster is always to add more RAM rather than making their coding better. Hopefully the Nokia/Linux combination will take a better approach.

Regarding the PC replacement thread I am excited about just how well this thing will be able to emulate (not necessarily replace) a lot of a PC's functions. It can already do about 50% of the work that my daily PC does and I've no doubt that within 6-12 months that'll get to 100% due to the efforts of open source programmers.
Of course, due to its physical size it won't actually replace your PC for daily work but for flexible work outside of the office it will work well.

For me its a fascinating step into the future and I'm really enjoying seeing how this platform develops!

Titus, have you installed the latest OS upgrade? I was wondering if people are still getting out of memory errors after the upgrade.

Yes, the "out of memory" error still appears. It feels to me that it happens less frequently, or I just learnt how to avoid it...

Yes, I have. It certainly helped in browsing experience (no frequent wlan drop-offs, no sudden reboots, faster browsing), but it probably doesn't make more memory available This isn't a huge problem, usually I encounter this "low-memory stall", when browsing my favourite photography website http://www.dpreview.com . First of all, there are many Flash animations already in the main page, and sample pictures might be 5-7MB jpegs, which easily stall 770, even when keeping my rules of engagement (= only two browser windows, one main, one for popup). But still, this is first portable device, which can handle Dpreview somehow comfortably.

yes, this is a problem and Nokia is right on top of it.right above the MAT line lies the area of slowness and OOM region, There is a gap between the MAT and the Signal Threshold(ST). The MAT value is set with experimentation on the device. So a ceiling has been specified within the kernel, MAT is set high to allow applications to allocate necessary memory without affecting overall system performance, but its value should be well defined to gurantee Memory Allocation Error when necessary to prevent extreme memory consumption. Before memory allocation failure occurs, however,process termination can be performed to release allocated memoery. It can be triggered by transmitting the LMS from kernel space to user space to notify applications to free up memory.LMS isdispatched according to ST value. I'll stop here but long story short Nokia is already right on the top of this and are currently tweaking the LMS module and working on the Nokia 770's threshold. With code optimization and the said issues the 770 will improve even within its own limitations.