Device memory is where you CAN (but its advisable not to) store pictures, videos, music etc.
Yes, the 9700 has 256MB of Application Memory. this is DOUBLE the 128MB of the 9000.
You should therefore have alot more FREE application memory, and won't have to do battery pulls to free up memory for the device to run.
"That's it then. Cancel the kitchen scraps for lepers and orphans, no more merciful beheadings... and call off Christmas."