Verizon is getting ready to update the Motorola Droid.
Verizon Readies Android 2.1 Update for Droid : Read more
Verizon Readies Android 2.1 Update for Droid : Read more
Unfortunately, the update does not address storage issues related to SD cards. Currently all applications are installed straight to the device's limited internal memory. Unlike the iPhone, Droid users are locked to a limited number of applications thanks to the size restraints. There's no indication that Google will allow app installation to the SD card in any future updates.