Apps on SD
Android Users to Run Apps from the SD Card?
It seems Android users will have the option of installing to the SD card in future releases.
In October, 2008, a ticket was posted at the Google Code Android Issues page pointing out that Android was missing the ability to run applications from the SD Card. This has now been marked as 'FutureRelease' by Google.
“I'm not permitted to disclose scheduling information - suffice to say it's coming soon,” posted a Google employee at the Issue.