To move contacts from phone to sim card go into your address book, select the contact to move, then highlight the number you wish to associate with that contact. Then click the wheel and select "Copy to Sim Phone Book." You have to do it individually for each contact.
Space available on the phone: >Options >Status
Delete phone logs: Go to the Messages folder >click the wheel and select "view folder" >select phone call logs >highlight the date, click the wheel and select "delete prior."
Additionally, it is not necessary to move contacts to the sim card for updating the OS on the Blackberry. The Application Loader will make a backup of your device and restore the backup after the OS load is complete.
Hope this helps...