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Can apps be transferred to an SD card and run from there?
yes download an app from the android market like app2 sd and it should work
yes and no:
most apps can be run from the internal sdcard storage
go to Settings - Applications, Manage applications. The internal sdcard is called USB on this interface.
No app needed to install for that, the apps do the same thing Settings does.
you can not transfer apps and run them from the external sdcard.