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What type and size memory card are you trying to use? The A540 works with MMC and SD cards, which max out at 2GB. It will not work with higher-capacity SDHC cards, even though they fit into the slot.
It's a lost cause. The A540 works with SD cards. While SDHC cards will fit into the slot, they are electronically incompatible and will not work in devices not designed for them. You need to stay with SD cards, 2GB and smaller.
Look at your memory card. SD cards have a slide switch along one edge. The position farthest from the contacts locks the card, protecting it from writes. The position nearest the contacts unlocks the card.
Take a close look at the cards that you've used. Are they all 4GB or higher "SDHC" cards? If so, that's your problem. Your camera was made well before the SDHC format came out. Although the card looks exactly the same as a standard SD card, the format it uses is very different. Unfortunately, there is no way that your camera will work with SDHC format. It can only use standard SD (cards that are 2GB or less). Fortunately, these are very inexpensive these days (check Amazon).
The A540 is designed to work with SD cards. Your 8GB card (I assume you really mean gig, not meg) is actually an SDHC card (SDHC stands for Secure Digital High Capacity). While SDHC cards will fit into SD slots, they will not work in SD devices. You need to keep using SD cards, 2GB and smaller.
Your new 4GB memory card is the problem. The card would likely be an SDHC card (look on its front cover). Your A540 camera was designed well before the SDHC format came out, and your camera will not recognize it. Your camera can only use standard SD cards (2GB or less). Here's some from Amazon.
The A540 works with SD cards. Your 4GB card is actually an SDHC card. While it fits into the slot, it is electronically incompatible and will not work in this camera. You need to use SD cards, 2GB and smaller.
8 GB is more than your A540 can handle. You can check with Canon, but I'm pretty sure that the max that your camera will understand is 2GB. Additionally, your 8GB card is most assuredly an SDHC card and not a standard SD card. Your A540 also does not understand SDHC format. The max card that you should buy for that model camera would be a 2GB standard SD card. These are very inexpensive these days and run about $6, shipping included:
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