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The C340 works with MMC and SD cards. Your 16GB card is a SDHC card. While it fits into the slot, it is electronically incompatible and will not work. You need to use a MMC or SD card, which top out at 2GB.
First check make sure the SDHC card is unlocked I'll provide a diagram for that also I just checked your camera's memory capacity and it's only good for a 1 gig SD card which if using an SDHC memory card might go to 1.5 stretch to 2gig maybe but not a 4gig. My first impression is you got to much memory card for the camera. You might be able to go to the Kodak site and download updated firmware to allow the camera to function with the larger card but that's a maybe as well. Here are the diagrams
The following information lists the type and maximum storage capacity of the memory card that each type of camera accepts.
EASYSHARE CX-, DX-, LS-Series Cameras accept:
DX3500, DX3600, DX3900: CF memory cards up to 1 GB
LS755: xD memory cards only
All other CX, DX, LS: SD memory cards up to 1 GB
EASYSHARE C-Series Cameras accept:
C300, C310, C315, C330, CD33, CW330, C530, CD40, CD50: SD memory cards up to 1 GB
C340, C360, C433, C503, C533, C603, C633, C643, C663, C703, C743, C875: SD memory cards up to 2 GB
CD43: xD memory cards only All other C-Series Cameras: SDHC and SDHC UHS-1 memory cards up to 32 GB
EASYSHARE M-Series Cameras accept:
M590, M583, M577 TOUCH, M5370 TOUCH: MicroSD and MicroSDHC memory cards up to 32 GB
All other M-Series Cameras: SD, SDHC, SDHC UHS-1 memory cards up to 32 GB
EASYSHARE P-Series Cameras accept:
P850, P880: SD memory cards up to 2 GB
P712: SD or SDHC memory cards up to 4 GB
EASYSHARE SLICE Digital Camera accepts:
MicroSD and MicroSDHC memory cards up to 32 GB.
EASYSHARE V-Series Cameras accept:
V1233, V1253, V1073, V1273: SDHC, SDHC UHS-1 memory cards up to 32 GB All other V-Series Cameras: SD memory cards up to 2 GB EASYSHARE Z-Series Cameras accept:
Z610, Z650, Z700, Z710, Z730, Z740, Z760, Z7590: SD memory cards up to 2 GB All other Z-Series Cameras, including MAX: SDHC and SDHC UHS-1 memory cards up to 32 GB FUNSAVER FD-Series Cameras accept:
SD and SDHC memory cards up to 32 GB EASYSHARE ONE Camera accepts:
SD and SDHC memory cards up to 1 GB
Most KODAK Digital Cameras are compatible with SD, SD/MMC, and/or SDHC memory cards.
Most current KODAK Digital Cameras are compatible with SDHC UHS-1 memory cards.
All KODAK Digital Cameras that are compatible with SDHC and SDHC UHS-1 memory cards use cards with Speed Class up to Class 10.
MicroSD and MicroSDHC cards with SD adapters can also be used in cameras that use SD or SDHC cards if the storage capacity criteria above is followed.
KODAK Digital Cameras are not compatible with SDXC memory cards.
The new SDHC cards must be used on newer devices that support the HC technology... I almost bought the 4 GB SDHC card becasue it was a great price... the asked a few questions and found out my camera less than a year old would not support it.