So, to make more space on your iPhone for more applications, you need to do this:
#1. Edit /etc/fstab and remove the ",noexec" part. Reboot.
#2. mkdir /var/root/Applications
#3. ln -s /var/root/Applications /Widgets
Editing the fstab is the key here. Otherwise, applications won't be able to run off of the /var partition.
The /Widgets directory is a special directory that the iPhone can use to locate installed applications. Linking it to /var/root puts it on the larger disk partition and in your root home directory. Then to move an application from /Applications to /Widgets, just type:
mv /Applications/Apollo.app /Widgets/
Now, restart Springboard or your phone and the application should run without problems.
I suspect you can also just symlink /Applications to /var/root/Applications, but I didn't feel like experimenting and I'd rather just manually move applications to /Widgets.