Let me try to explain it to you.

WebOS is built on a Linux kernel and needs to run in a Linux memory partition in order to work properly. In order to install music and such using a PC with USB you need a FAT32 partition. Palm wanted to keep the media partition (FAT32) as large as possible and in hindsight ended up making the Linux partition too small.

Trust me if Palm made the Linux partition 2 GB and only left 5GB for media there would have been complaining. Any way they slice it there will be those that will complain.

Some of the apps could possibly run in the FAT32 Partition but those requiring Linux services and such can not. So therefore the only proper solution will be to make the Linux partition larger and the media partition smaller. This would be an easy task if one did not mind having a full erase install of a new version of WebOS. Doing it without wiping is very difficult and might even be impossible.

As others have said, palm is working on this and will have a solution in short order. You have 2 possible courses of action. One is to be patient and wait for a fix and the other is to whine and moan like a 3rd grade school girl. Your choice.