Is there a way to change the location of where your apps are installed. Instead of the Droid's internal memory to the the micro SD card?
No but you can use Astro or other tools to move the apk install files (Astro's backup option) to your card. Then uninstall all your apps. Next install the apps again from the apk files on your card. The uninstall removes the app and the apk from the phone. This will save you some space.