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Is cell phone internal memory like RAM or just storage?

Lately I've been shopping around for a new cell phone with more functionality than my current basic nokia, goodies I'd like include a 2 megapixal camera, calender and a contact database that can sync with MS Outlook, and an MP3 player. Some models, such as the Nokia 6288 or 6280 (I think) look pretty good except that the reviewer complains it only has 6 MB (maybe actually less) of internal memory, although it's clear that the phone accepts miniSD cards up to 2 GB. I'm confused, is cell phone "internal memory" like RAM on a PC, where if you don't have enough it can hamper the speed of applications, or is it just storage space? And if it's the former, how do you know how much is enough? (i.e. if I'm just running a word editor and a music player on my PC, I don't need a ton of RAM). Can someone help me clear this up?

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