Android applications I use:

Move Dalvik Cache to another partition

   1 cd /cache
   2 mkdir dalvik-cache
   3 chown 1000 dalvik-cache
   4 chgrp 1000 dalvik-cache
   5 chmod 771 dalvik-cache
   6 cd /data
   7 mv dalvik-cache dalvik-cache-orig
   8 ln -s /cache/dalvik-cache dalvik-cache

This appears to be done automatically if you use apps2sd with Cyanogen's ROM.

Source: Quick Hack: Save Tons of Space