Is it the camera memory or the SD memory? Look on the menu screen on the bottom right. If the camera is not recognizing your SD card, it is saving to the camera memory which is very small and may give you 20 secs of video. It is supposed to automatically recognize your SD card but may not be doing that at all. If it doesn't do it automatically, I have found no way to get it to do it. The menu contains no option for formatting an SD card and it can't if it cannot recognize it anyway. I have tried reformatting the SD card in another camera. It may be the SD card size is too small and it won't recognize. I don't know. I have one and can't get it to work (recognize either one of two SD cards that I already had) and plan on taking it back to Best Buy to see if they have a solution before I buy new SD card. Anyway if you see "int" in the lower right that means it is recording to the internal memory and not your SD card.
I went to Best Buy and exchanged the camera because I feel the contacts for the SD card were glitchy. At any rate, I have found that the SD card should be larger than what I was attempting to use. I bought a new SD (4GB) and it worked just fine in the replacement camera. I inserted my two older SD cards (2GB and 258 MB) and the new camera did not recognize those.
My suggestion: buy a new, unused card that is at least 4GB. Found mine on sale for $14 at Best Buy.
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