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This message can be caused by several things, including; incorrect memory card, incorrect memory card insertion, dirty points of contact, settings on the camera are in error.
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Olympus cards don't always work in Fuji cameras. Maybe not at all in older Fuji's.
You could try and update the firm ware in your camera and see if that does anything (if it's available on the Fuji website) Go to the service and support section on the web site and you may be lucky
The S3000 has a 512MB limit according to Fuji. Ther is also no firmware upgrade to address this issue. However I loaded a 1GB Olympus M type card into th S3000, which was pre-fornatted and worked straight away. After putting the card into the reader in my laptop, and then returning to the camera, the camera identified the card as not initialized. I tried to format the card in the camera but this didn't work.
To fix this I connected the camera to the computer using the USB cable located the camera card via My Computer, left clicked on and did a quick format in FAT (FAT16). After this the camera read the card and indicated 1305 frames available at 3M.
Try this site for a firmware update. You need to get a AC power adapter for it to work though. It is from Fuji and it worked fine for my A120. The older XD cards are of a different format then the newer ones so if your new XD card has an 'M' on it you will need to do the firmware solution.
Good luck http://www.fujifilm.ca/x3719.xml