Your problem is that you are trying to use an incompatible memory card.
The DXG-572V is not SDHC compliant and will only work with regular SD cards. In theory it's compatible up to 4GB but in practice there are few standard SD devices which work well with standard SD cards above 2GB.
Extra info to my reply above:-
To avoid confusion you should be aware that standard SD cards go up to 4GB maximum and SDHC (the HC means High Capacity) start at 4GB. The two formats are the same shape and SDHC compliant devices will accept standard SD cards, but devices built around the earlier SD specification cannot work with SDHC due to basic hardware limitations: this means that a firmware update cannot fix the problem. Your camera is unable to format the 4GB SDHC as it lack the ability to do so. To muddy the waters further there have been some products built around the SDHC standard which were shipped with firmware for the earlier standard which can be updated but your camera is definitely not one of them.
The DXG-572V is a remarkable flash-RAM video camera in one respect only: the price. It packs an awful lot into a US$99 retail price tag but at that price the manufacturer won't have paid the licence fees needed to incorporate SDHC technology.
As I indicated in my first reply, stick to regular SD cards and you'll be fine, and best stick to 2GB maximum unless you can try a 4GB before you buy. You will probably find that various processes on the camera take significantly longer using a 4GB card though and you may even find that it doesn't actually work properly at all on a 4GB card.
I hope that you've found my answer to be of assistance and that you return the favour by rating my answer.
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