I have a 4GB card in mine that has about 2.8 GB of ePUB files on it. The processing phase once I loaded the files took about 2 hours to complete, but once loaded the first time it seems OK.
However, I would not recommend filling the entire card, I did try filling the full 4GB once and experienced some major problems. After the 3-4 hour processing time it seemed to work ok at first but then I had realized that the internal memory had completely filled up. The .kobo\images folder was >600MB, and it did not seem that it was updating the sqlite DB anymore. Every time I powered it on I got the same 3-4 hour processing time. I ended up manually deleting the .parsed files for my content, and doing a factory reset of the device to get it back to a usable state
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