The camera will only accept true SD cards i.e. up to 2Gb. Your 4Gb card will be an SDHC which is not compatible. See here http://en.wikipedia.org/wiki/Sd_card#Compatibility_issues_with_2_GB_and_larger_cards for further explanation.
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You need to get an SD card. The 4010 works with SD and MMC cards. Your 4GB card is an SDHC card. While it fits into the slot it's electronically incompatible and will not work in the 4010. You need an SD card, 2GB and smaller.
SDHC is an extension of the SD standard that extends the capacity from 2GB to 32GB. It's backward compatible in that devices designed for SDHC cards will also work with SD cards. It does not go the other way---that is, SDHC cards will not work in devices designed for SD cards.
I presume you mean a 2GB card, since a 2MB card might hold one picture. The Digimax 4010 works with SD cards, not SDHC cards. You may use an SD card. Just make sure it is an SD card, 2GB and smaller. SDHC cards start at 4GB and go up to 32GB but, as stated earlier, will not work in the 4010.
That is correct. While SDHC cards will fit into SD slots, they are electronically incompatible. SD cards will work in SDHC slots but not the other way around. You need to go with SD cards 2GB and smaller.
make sure there isn't a limit on the memory size for the camera, some models have a limit. also make sure the lock switch on the memory card isn't in the locked position: http://kb.sandisk.com/app/answers/detail/a_id/1102
Should the green LED flash continiously - there are still life left in the camera. Insert an external SD memory card in the battery compartment and the camera might power on. Seems the internal memory of 16MB is faulty....