^^Your clarification did help, but now I've installed arnd 150 apps n many of them are large games of 6-10mb, but still the Ext2 is filled only 16mb !!! Its not like its being compressed in Froyo, like u explained, but its something much stranger, coz even if it takes memory in kbs on the SD card in Froyo, its not taking ANY space in my case.
If we assume that the Partition tool that I used on PC isnt reading the installed Ext2 for some reason, then it should have either displayed that the Ext2 parition is EMPTY or the actual size of 150 apps installed, but why only 16mb still?
And another query is y does it install some apps on the internal memory?