FYI: I experimented and initially had problems with the following SD Cards a 64MB (out of an old phone) and a Sandisk 1GB (which may or may not have been SDHC) in any case I initially had problems with the FAT32 file system under Windows, although this is suposed to be supported.
I resovled my issues with the SD Formatter from the SD Association:
http://www.sdcard.org/consumers/formatter_3/
It formats the card with the appropriate file system for the card size (in both these cases FAT16 or just plain FAT) and provides a FORMAT SIZE ADJUSMENT option which I used (and do advise to use) for a slight but insignificant loss of capacity (it aligns on cylinder boundaries I think which delivers the greatest compatibility).
Never quite got the old 64MB card working but it was obviously the issue with the 1GB card that I was concerned about.
I will always use this tool with these options for what are called "embedded devices" in future as the first, last and best hope of getting it working with your eReader etc...
If in doubt everyone then PLEASE try this to see if your card is truly campatible or not!
Regards to all.
Matthew.