Look for damage or wear on the film holder.
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According to the ION quick start guide. When there is no optional SD memory card install (in lower right SD memory slot) the max. scan capacity is 14 MB.
14 MB is not a lot when scanning in 5.1 megapixel resolution.
Can you get hold of a 1GB or 2GB SD memory card to do a quick test?
These SD card is cheap. 1 or 2 GB is under $10.
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Use a different USB 2.0 port on your computer.
Make sure your operating system recognize the ION Pics 2 SD when you plug in the USB cable.
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Reference
ION PIC 2 SD quick start guide
HERE