Maybe it is having trouble with the size of the memory. Memory cards have grown enormously in capacity in the last couple of years, and even relatively new cameras may not be able to cope with the memory size of the newest cards. It is often difficult to find out the maximum capacity a camera will use, as today's memory cards are much larger that those available when the manual for the camera was written.
SD and SDHC cards fit the same slots, but many cameras won't work with the SDHC (high capacity) cards. SDHC is not backwards compatible. A 4GB SD card is actually SDHC.
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