It is possible to place applications in alternate locations (eg /media/internal) and symlink them to the appropriate application folder (eg /usr/palm/applications or /var/usr/palm/applications).
ln -s [application directory] [symbolic link to directory]
ln -s /media/internal/apps/com.pregame.app.flashlight/ /var/usr/palm/applications/com.pregame.app.flashlight
This will only delete the link, not the symlinked files.
An app with an internal symlink will not be able to be stored in /media/internal at this time, since it is a vfat filesystem.
The same effect can be had by modifying /etc/palm/luna.conf by appending the **ApplicationPath** with the new location.