What is HighMem?
HighMem gives you full access to the 512mb ram the phone has. Stock standard only gives the phone about 250mb or so. The more the phone has to use the faster
HighMem was a backport of the code in the 2.6.32 kernel that allowed the use of both EBI memory banks.
Starting with 2.6.32 this is a non issue as all memory can be properly addressed. Google has not released an "official" OTA using this, but Froyo does take advantage of this and allows for more memory to be available for applications to use, thus making your phones more stable and faster.
Storage memory is different. This is where applications are downloaded, installed and run from. With Froyo (Android 2.2) you will be able to install certain apps to your SD card so your phone does not fill up as fast. Now, the thing to keep in mind here is that your SD Card is slower than on-board RAM and not all apps should be put on the SD Card.
Reason is, the implementation in Froyo does not require you to partition your SD card like the App2SD for rooted phones. What happens is that when you mount your SD Card to a PC, your apps no longer have access to the SD Card, making them non-functional while you are mounted.
The partitioning method didn't have this problem since the only partition that was mounted was the FAT32 partition.
Hope this information helps. :)
~Dennis Christilaw