I've tried a similar set of steps on my T1, and am not able reproduce the problem as you are able to. It's a little odd that the the SD card produces the problem, but internal memory doesn't. There really isn't anything special about how the driver handles an SD card versus internal memory.
Are you able to try a different SD card? I know that not all SD cards are created equal, and there are even counterfeit cards out there that have been known to cause problems for folks.
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