I still have a nexus one. This little phone 196 Mb of storage space (and most of that is taken by the system). But I have somehow managed to live off it for 2 years. This is for anyone with a small amount of memory. We will be using Link2SD. MUST HAVE CWR AND A ROOTED PHONE.
Backup all data on your SD and then reboot into recovery (Clockwork recovery mod). Then go to advanced -> partition SD card. Then select a size. I choose 1024. When you are done reboot.
Open the play store and search for Link2SD and install it (or find and sideload the pro version for free :D). Open it and give it root access if it asks you.
When you open the app you should get a Message asking you to create a mount script (if not got to the menu and press Recreate mount script). Choose ext2 if you formatted as described above. Then hit OK and reboot.
You don't have to do these but I personally recommend them. Go to settings in link2SD and do the following.
Set auto clear cache to 1 or 3 hours.
This will give you a little bit more free space by clearing useless cache files.
Put a check next to auto link.
Automatically link new apps when you install them.
Go to install location >> and set it to external.
Automatically install the apps on the SD card.
I hope this helped you. If you have any questions or errors leave them in the comments and I will try to help. I TAKE NO RESPONSIBILITY IF YOU MESS UP YOU PHONE (IE FORMAT YOUR SD WITHOUT BACKING IT UP). image from google.