This one was frustrating - how to install Classic Apps in the new Palm Pre Phone? After all, that's the reason I bought it.
Turns out after webOS 1.03 something happens where you have to follow these instructions posted HERE:
Here is a brief summary:
Well, this trick has worked for so far. First, after updating to WebOS 1.0.3, and having ClassicApp recreate the new folders seen under USB, I reloaded ClassicApp ROM updater in the ClassicApp/Palm/Launcher folder. I unmounted the USB Pre drive and restarted Classic. After a couple BSODs, Classic started just fine and I ran the ClassicApp ROM updater fron the internal card. After making sure Classic would run again, I went back to Pre in USB mode. The new folder structure was the ClassicApp/Intsall folder (which really doesn't seem to do anything), and a revised ClassicApp/Launcher/Install folder. Make sure to delete all read Me files under either of these USB folders. Then to add new prc or pdb file, I put them in the ClassicApp/Palm/Launcher/Install folder. When I unmounted the Pre from USB and restarted Classic, I immediately ran the Import app under Classic, and lo and behold, IT WORKED! I could now install prcs and pdbs and have them run in Classic again.
Apparently, when files are installed this way it imports the files from the Internal (virtual) Card and puts them in Phone under Classic. The Internal Card becomes empty, and in Classic, the prc can see the appropriate pdb file and the app runs as designed. This took a lot of fiddling with various combos, but this version worked for me. YMMV.