I've known for some time that a radio update for the G1 gives about 14Mb more userspace memory when used in conjunction with the right components on your rooted HTC G1.
I wasn't quite clear on what you had to do to get this working, and my first attempt failed. So here's what worked for me.
I referenced these pages. EzTerry's XDA post, EzTerry's CyanogenMod Forum update, srd's summary of actions.
Copy radio update, CyanogenMod image and Google Apps zip files to the G1 SD card.
Reboot phone into bootloader - power off, hold down camera button, power on. Press Back button to enter Fastboot mode.
On your host
$ fastboot flash radio radio-2.22.27.08.img $ fastboot flash hboot hboot-1.33.0013d.img $ fastboot reboot-bootloader
and after the phone reboots into the new bootloader
$ fastboot erase system -w $ fastboot erase boot
Now power the phone off. Then power on again into recovery by holding down the Home button while pressing Power to switch on.
In recording, apply the radio 2.22.28.25 update zip. It will apply and reboot back into recovery. Then apply the modified Cyanogen image zip and then the Google Apps zip. Finally, reboot.
The phone will take longer starting than usual, but when it does if you adb shell
into the phone and check the memory, you'll see
# cat /proc/meminfo MemTotal: 112844 kB
a worthwhile improvement over the previous
# cat /proc/meminfo MemTotal: 98568 kB