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The reason you are having this problem is that the maximum size memory card supported by this camera is 2GB. Any card with a larger capacity - like your 4 GB card - can not be initialised by the camera.
The S7000 cannot handle cards larger than 2GB.
If you need 4GB you can also fit a 2GB type 2 compact flash card which is the american standard.
For europe you will get a type 1 card this will also fit it is just slightly thinner.
It looks as though the camera cannot support memory as high as 4GB. Capacities above 2.2 GB require that your camera supports "FAT32", and S7000 does not support FAT32.
The S7000 has always been known to have some problems with regular CompactFlash cards, with both power drains and limitations reported (the S7000 seems unable to handle CompactFlash cards above 2GB, as it doesn't support FAT32). I imagine it's possible that there are other potential problems associated with this.
It's usually recommended that, instead of using CompactFlash cards, you use either xD-Picture Cards or IBM/Hitachi
Microdrives, which are both fully compatible with the S7000.
Pressing the “MENU/OK” button as you would to erases files. There is an option to format the xD-Picture Card. Formatting erases protected files, but allows you to then take photos.
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