Does it make any difference if i use a fujifilm xd card in my olympus 1050 sw camera

XD cards are now obsolete memory cards. The cards were developed by Olympus and Fujifilm and released during the summer of 2002. There is now an adapter that allows an SD card to be used in place of the XD card You need to remember that the capacity should not exceed 2 GB or the camera will not be able to accept it. As far as I know cameras accepting XD cards were last produced in 2007, I don't know what specific models however the camera specifications would show what type card it uses.

Select Backup from the Setup menu.

Forget the driver. Use a card reader to download your pictures.

I keep getting the message card cover open how can I resolve this error?

make sure you are using an Olympus XD memory card, most others do not support the panoramic photo setting :)

Format the card in the camera

Panorama shooting lets you create a panoramic picture, using the OLYMPUS
Master software from the provided CD-ROM. An Olympus xD-Picture Card is required for Panorama shooting. If the card is a Fuji xD card then the panorama feature would be disabled to you.

http://www.olympusamerica.com/cpg_section/cpg_xd.asp

Here is the link to the Olympus website where you can check for xD card compatibility for your camera.

The xD-Picture Card (xD stands for "extreme digital.") is a flash memory card format developed and introduced to the market in July 2002 by Olympus and Fujifilm, and manufactured by the Toshiba Corporation. xD cards are in Olympus and Fujifilm digital cameras, and are available in a range of sizes, from 16 MB to 2 GB currently. A higher-performance xD card known as Type M came out in 2005, and uses Multi Level Cell (MLC) architecture.
An xD card is 20mm x 25mm x 1.78mm and weighs about 2.8 g, making it significantly smaller than the nearly matchbook-sized CF card and about half the size of the SD/MMC card. As far as size goes, it is much closer to miniSD or RS-MMC. The manufacturer listed write speeds for xD-Picture Cards are: for the 16 MB and 32 MB card, 1.3 MB/s and for the 64MB and higher cards, 3 MB/s. Both offer a minimum read speed of 5 MB/s. The xD Type M cards have a faster standard rate of 4.0MB/s for reading and 2.5MB/s for writing.
Anything up to 2gb will work with your camera, either the type M or the type M+ will be fine.

A Fuji card can be used in the camera; the only function that will be disabled is if you wish to take panorama shots with the camera. Panorama in the Olympus cameras is proprietary therefore in order to shoot panorama shots Olympus requires that you specifically use their xD picture card. Otherwise the Fuji card will work just fine.