I have about 24 pictures on my XD card and I was trying to .rar them in one file on my PC but it was not working and so I ejected the XD card from the PC reader slot. When I put the XD card back in my camera, the message came up 'card needs to be initialized' (or similar words). I notice that to Initialize, it would erase all the files on the card which I do not want to do. Obviously, something has affected the formatting of the XD card whilst I was trying to zip the pictures. Is there some S/W that will repair the XD card without losing all the pictures? Any help greatfully received. The XD card is a Fujifilm H512MB .Many thanks.

Are you sure it is a xD card and not an SDXC?

Then there should be a little arrow, pointing in the direction it should be going while inserting.
Try to eject the card and reinsert the card.
If you never used a xD card, and nobody else ever tried to put something in the slot, the card should go in smooth.
After placing the card, don't forget to format the card in the camera.

Can be lots of things. Would have been handy, if you had told what card you are using. Your camera can work with CompactFlash, Microdrive and xD-Picture cards.
If you did not insert the card(s) you are using, correct, or you removed the card in a wrong way, you could have damaged the cardholder, causing an error you probably can't repair yourself. The CF and Microdrive you can remove by pressing the eject button. The xD-Picture card you can remove by pressing in the card, and release it. The card comes out.
Then you could have damaged the file system, by opening the card cover, while the card access lamp was blinking. What ever card was in, the filesystem can be damaged.
Then you can have two cards in, Both, o CF of Microdrive and a xD picture card. Some settings are required for the camera, to know hat card it should use.
If you have an Microdrive, the drive can be damaged, by a magnetic file, or the drive just stopped rotating. A micro drive is actual a miniature spinning hard drive.

First check if the memory card is inserted correct. Eventually, remove it and check all contacts, on the card and in the camera. Then try formatting the card. If you think there could be important pictures on the card, put it in a external card reader and use a recovery program, to see you can recover the pictures on your computer. Programs can be found on the net.
If you can't format the card, check if you have a Microdrive. If so, try to replace that with a CF or xD card.
I hope something is to any use for you.

Next time, please give us some more details. I know you exactly see and know what is not working, but we only can use your description. And only what you give us.

Solved

The solution is: 1. go to set 2. go to frame no. and reset. You can make pictures again.

The D-560 will not accept any card bigger than 512 mb. No firmware update is available.

Just had the same issue today. The Olympus Helpdesk told me that the fact I had printed one of the picture from the Xd card in directly inserting the card in the printer slot for Xd created the problem....
The guy from the Helpdesk strongly recommended to transfer the pictures from the camera to the computer exclusively using the USB cable of the camera.
In the end I have saved all my 505 pictures in using the Smart Recovery from PC Inspector but why the hell this problem only happens with Xd cards?

Try re-formatting the card.

HOW CAN I REPAIR MY CORRUPT FILE IN XD CARD

Format the card in the Camera- read your manual

Stylus 300 Digital Memory Card Storage Capacity Quality Pixel Resolution 16MB xD-Picture Card 256MB xD-Picture Card SHQ, HQ 2048 x 1536 6, 20 shots 96, 326 shots SQ1 1600 x 1200 24 shots 399 shots SQ2 1280 x 960 38 shots 614 shots SQ2 1024 x 768 58 shots 940 shots SQ2 640 x 480 99 shots 1598 shots HQ Movie 320 x 240 15 fps 16 sec. max per movie 16 sec. max per movie SQ Movie 160 x 120 15 fps 70 sec. max per movie 70 sec. max per movie All capacity figures are approximate. Stylus 400 Digital Memory Card Storage Capacity Quality Pixel Resolution 16MB xD-Picture Card 256MB xD-Picture Card SHQ, HQ 2272 x 1704 5, 16 shots 90, 266 shots SQ1 2048 x 1536 20 shots 326 shots SQ2 1600 x 1200 24 shots 399 shots SQ2 1280 x 960 38 shots 614 shots SQ2 1024 x 768 58 shots 940 shots SQ2 640 x 480 99 shots 1598 shots HQ Movie 320 x 240 15 fps 16 sec. max per movie 16 sec. max per movie SQ Movie 160 x 120 15 fps 70 sec. max per movie 70 sec. max per movie