I have seen many apps within the market that allow storage on the sdcard. However, I do not how to move apps to my sdcard for my phone. I don't really care about the availability of widgets as I do not use them. For example, I noticed that my Facebook and Tweetcaster (along with Twitter) apps gradually increase in space. It would be nice to move them to the sdcard to help relieve my phone storage.
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demmo is right. this is a feature only available with Android 2.2 or higher. However, if you are concerned about space you can navigate to the "manage applications" screen (through the menu/settings) and go into the apps and clear the data and cache of any that are growing larger.