What happens when you eject the card from the device and insert it again? For the eject, you should get a screen flash and be returned to home screen. For the insert, you should see the processing screen for any new books, then be taken to the home screen. And if there are no new books, you will be taken to the home screen.
And after the insert, does the System information page of the settings show the SD card? It should have the size and available space displayed for the card.
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