yes you do.
Backup you card to your computer, you will lose everything
Boot into recovery
Select partition SD card
do like 32mb swap, 256mb EXT and rest Fat32
next convert EXT2 to EXT3 which is journaled and less susceptible to corrupting
reboot/reload your items to SD
It should work, and there is a script you can run to verify it (forget the actual path everytime). It doesn't move the entire app to the sd card, so your savings may be minimal, depending on your apps.
You can select "Move dalvik to sd" in dc config to save even more space, but I wouldn't do it.