THE PICTURES ARE BEING SAVE TO INTERNAL MEMORY NOT SD CARD AND CARD IS NOT LOCKED

It sounds like the camera is set to always save to the internal memory. With the SD card in place, adjust the settings to save to the SD card. (Sorry, I don't know the exact menu paths for your camera).
(If you have also copied your pictures off your camera, you can erase the internal memory and use that to take more pictures - however it will fill up again).

We need to be sure of some things:

Are you saving the picture to the internal flash memory or an external SD card?

1) The internal memory will only hold 16MB of pictures, check if it's full.

2) The external SD memory can only be up to 1GB in size, anything bigger will not be recognized by the camera
1. Make sure the SD card is not "locked". Some SD cards have a little switch to prevent them to be written into.
2. SD card should be formatted by the camera preferably or as the FAT format in your PC.

Does this help you in any way?
Please give us more information as to how you are saving them and/or any further questions you may have.

Good luck!

Your camera is only supporting SD/MMC Cards (up to 2 GB)

The card that you currently have might be faulty. Please try another card.
You might also need to switch the camera over to saving pictures directly onto the SD card.1: Menu, Cam settings, Chose AUTO or SD card option Press OK

Note: If the SD card isn't in the camera or is unreadable the camera will automatically go back to saving you taken pictures on the internal memory.

How to switch the camera over to saving pictures directly onto the SD card.

1. Menu
2. Cam settings
3. Chose AUTO or SD card option and Press OK

Note: If the SD card isn't in the camera or is unreadable the camera will automatically go back to saving you taken pictures on the internal memory.

You need to switch the camera over to saving pictures directly onto the SD card.

• Menu
• Cam settings
• Chose AUTO or SD card option
• Press OK to SD card

Note: If the SD card isn't in the camera or is unreadable the camera will automatically go back to saving you taken pictures on the internal memory.

If you experience problems:
The lever on your SD card might be turned the wrong way so the SD card is reading protective.
Please turn the lever and try again.

The SD card might not be supported by the model: Your camera Memory card support is SD/MMC up to 2 Gigabyte and SDHC up to 8 Gigabyte

The SD card might not be faulty, try another card, since the camera could give you a message like the one you're experiencing.
Try with a different SD card that is supported by the camera.

Once you have set the settings to save onto the SD card directly you might like to transferre your existing pictures from the internal memory onto the SD card:

Question :
How do I transfer pictures from the internal memory of my KODAK Digital Camera to a memory card? Answer :
Follow these steps:

On the camera, press Review and then Menu.

Select Image Storage.

Change to Internal Memory.

In the menu listing, scroll down to Copy, and select OK.

Select a single picture, or select All.

When you have finished copying pictures, reset the Image Storage location to your original setting.

How to switch the camera over to saving pictures directly onto the SD card.

1. Menu
2. Cam settings
3. Chose AUTO or SD card option and Press OK

Note: If the SD card isn't in the camera or is unreadable the camera will automatically go back to saving you taken pictures on the internal memory.

After you have done so I would guess that you would like to transferre the pictures from your internal memory over to the SD card.:

Question :
How do I transfer pictures from the internal memory of my KODAK Digital Camera to a memory card? Answer :
Follow these steps:

On the camera, press Review and then Menu.

Select Image Storage.

Change to Internal Memory.

In the menu listing, scroll down to Copy, and select OK.

Select a single picture, or select All.

When you have finished copying pictures, reset the Image Storage location to your original setting.

How to switch the camera over to saving pictures directly onto the SD card.

1. Menu
2. Cam settings
3. Chose AUTO or SD card option and Press OK

Note: If the SD card isn't in the camera or is unreadable the camera will automatically go back to saving you taken pictures on the internal memory.

If you still experience problems:
The lever on your SD card might be turned the wrong way so the SD card is reading protective.
Please turn the lever and try again.

The SD card might not be supported by the model: Your camera Memory card support is SD/MMC up to 1 Gigabyte

The SD card might not be faulty, try another card, since the camera could give you a message like the one you're experiencing.
Try with a different SD card that is supported by the camera.

After you having successfully switched over to saving onto the SD card. I would guess that you would like to transferre the pictures from your internal memory over to the SD card.:

Question :
How do I transfer pictures from the internal memory of my KODAK Digital Camera to a memory card? Answer :
Follow these steps:

On the camera, press Review and then Menu.

Select Image Storage.

Change to Internal Memory.

In the menu listing, scroll down to Copy, and select OK.

Select a single picture, or select All.

When you have finished copying pictures, reset the Image Storage location to your original setting.

Your camera is only supporting SD/MMC Cards (up to 1 GB)

The card that you currently have might be faulty. Please try another card.

You might also need to switch the camera over to saving pictures directly onto the SD card.1: Menu, Cam settings, Chose AUTO or SD card option Press OK
Note: If the SD card isn't in the camera or is unreadable the camera will automatically go back to saving you taken pictures on the internal memory.

The SD card has a lever on the side of it. Move it to the other position.That is to prevent accidental erasing.

The only other thing you havent mentioned is wether or not you have formated the card first.