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If its more than 8GB it wont work. If its less than 8gb then put it into card reader on your computer and reformat the card. If that doesnt help or you computer doesnt recognize it either obviously the card is bad.
Your PS2 lens is probably dead now,that is why its showing NO DATA with or without inserting disc.And another reason is you did not have connected your Memory Card in Memory Card slot,if its connected then your memory card too is out of order.
I recommend you to do following and check if problem still exists:
Try to play New DVD games.
Insert some other Memory Card.
Clean your PS2 lens,you can watch this video to clean it your self.
This is either a bad memory port on the PS2 or a fried memory card. I would suggest that you get a brand new memory card and try that. You can get new ones very cheap at Wal-Mart & Target usually has them on clearance.
If the problem persists with the new card then the port is bad. You then have two choices: send it in to Sony and pay approximately $150 for them to repair it out of warranty. (As long as the seal that covers the screws isn't broken.) The positive side of this is that it includes a year warranty.
The second option is to open the case of the PS2 and switch the plugs that go into the memory ports. This will allow you to insert a card into the second (right) port and the PS2 will think it is in port #1.
There could be a problem with the actual memory card slot itself. First try using another memory card just to be 100% sure, and if it still doesnt pick it up i would think (however i am no expert) that there is a problem with the slot. If this is the case im not sure you can fix it yourself but it may be worth lifting up the slot cover and seeing if one of the contacts is bent -this may be straightenable with a small set of electrical pliers. If all else fails its best to take it to someone who knows that they're looking at, although sometimes it probably costs less to just buy a new playstation. Sorry i cant help more.