It did not work anyway. I have changed the card now with a Kingston 4GB SDHC4 and has been working well since yesterday. I formatted it in the phone and removed it and connected it to the laptop and copied my old files into it.
I suggest you try to format it as FAT not FAT32 and see what happens.
I believe I have found the solution for this issue.
The reason behind the error message is that the SDHC card is of class 2. The solution is to use SDHC of class 4 and higher for Android 2.1 and higher.
Class 2 SDHC cards have a speed of 2Mbps while Class 4 is 4Mbps. Android 2.1 was optimized to get the best out of the camera and be able to record HD video. This HD video requires a speed higher than 2Mbps. Even if your camera does not support HD video, the OS does. Thus, many applications that use the SD card that were written for 2.1 rely on using the read/write speed of 4Mbps or higher. This leads to many applications tend to cause this error on the phone.
The solution is simple, get a class 4 or higher SDHC card if you have 2.1 or higher android. Many phones do not face this problem because they already supply the phones with such a card. I was not that lucky, though. I received my phone with a 4GB SanDisk class 2 SDHC card. I do not blame the distributor for that as the phone was 1.6 Android when I bought it.
I hope this helps.