Average available memory

Thanks DaRk. Makes sense .
It means 17mb empty, 135mb is being used by 25 apps that can be shut down or put in the background to free up the space easily. So you can essentially look at these as your "psuedo" free memory, with the first number (17) being the REAL free memory.

118mb in 9 means 118mbs of memory is being allocated to system required apps that cannot be shut down.

The only thing I don't understand is why do these numbers always add up to ~380mb, when our phones have (even after considering a MB is 1024KB's, not 1000) 488MB of ram?

Where's the last ~120MB going?