Theres a new software update for N97 – Memory Reorganiser 1.0. Download it from Menu -> Applications -> Software Update. You need to run Memory reorganiser from Applications. It will auto remove itself after the first run.
I havent noticed any major improvement. To be fair to nokia, i dont run too many apps at one time. Guess others will notice the change. Let us know how you feel about the new update.
One of our twitter friends @netcitizen “Got 10 mb of C drive using the reorganizer” .. which is real good.
As always, follow us on twitter for all the latest updates – @nokian97blog 
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It gave me around 5MB of space.
People do you clear your cache files after exiting web?
i have only about 1.6 mb free on C after installing and run the program
1.6mb is too low. go through your C drive and move stuff as much as possible to your mass memory. uninstall apps you dont want.