I've found the eDGe can be a bit quirky about things like this. I took my Adata 8GB Micro SDHC out of my Nook Color and put it into my PE today to try it out (been using USB flash until now). It was recognized, but about a third of the e-ink side went black. Odd.
I left the card in and sent a book to the e-ink side and that fixed it. The chapters on the audiobooks accessed from the card were all wonky -- not in order (Part 1, Part 2, etc.) like they are on the Nook.
I ordered some additional USB drives and think I'll stick with those for the time being. They play the videos and audiobooks flawlessly.
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