MIO 268 transfer?

Just got a 268 to replace my old 168 and trying the Mio transfer to put some mp3 onto an empty SD card. Problem is that when I put an empty, formatted card in the 268, I see a hand pointing to the sd slot with a red cross? When I run the transfer program, it shows no space on the device to transfer anything on to? In fact it seems to do this with any card I put in there!

[getsurfers]

Are you using HC or normal SD cards, and how big are they?

Are they cheap ebay ones from china? many are fakes that dont work.