First of all, thanks a lot buddies for the amazing help. All I could get from iRiver's service was "Your Story HD Wi-Fi needs to be sent in for repair service." (!).
So, after a lot of trial and error, I found that the problem was caused because of long filenames. I'm not really sure, but it seems to me that the filename plus path may not exceed 255 characters in total. I must do some more research, but currently have no time.
So the thing is as follows: the device scans the SD card successfully and creates EB07W.sys into system folder, giving no trouble. Next time it has to scan the card, the "Updating your Story HD... Please wait" loop happens. Formating the card nor deleting everything in it doesn't solve the problem. If delete the system folder and then put the card the device scans the files and automatically creates the system folder and EB07W.sys file as expected. The next time the Story HD has to scan the card it works well if the problematic files where previously deleted or renamed.
I hope I explained the problem well, which in fact seems to me like a bug in the operating system of the Story HD. I'll like to know your opinions.
PS: I made a syslog of the error described but couldn't find any error in it. I attach it, maybe some of you find something useful.
Last edited by mzecher; 02-25-2012 at 12:07 PM.
Reason: Deleted attachment