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Given everything, it would appear that you may have a flaky external uSD port that intermittently interrupts the connection with your uSD card, and Nickel reacts badly to processing interruptions. If Nickel can't see the files on your external uSD card there is no problem and you can read the files you have on your internal uSD card (if your Touch has one.). This condition would be more of a problem for Nickel because it builds and operates from an SQL database, which can easily be corrupted by such processing interruptions.
In any case it would be best to return your Touch for a replacement or refund.
Luck;
Ken
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