Nope, cards are real. Bought 5 PNY 4GB class 4s from Staples for $10 apiece. Used a couple of them to write Nook Color custom fw images, one in my Archos A43IT, and another in my Viewsonic gTablet all fine.
I'm still thinking that this is a sw problem, but not am more likely suspecting the Kobo WiFi fw...
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