There must be some kind of issue with the CF/Wifi card slot.
2 years ago I purchased a AXIM X5 & a SMC2642W wifi card. Used the SMC drivers & everything worked fine. I even use sniffers with the Intersil PRISMNDS.DLL Reference Driver. 3 months ago, I started getting the "CardInitialize failed !!" and the "Unknown card in Socket 1" errors. This is all after everything was working fine for 2+ years. I think inserting and removing the CF card everyday killed it. Sometimes it will work sometimes it won't. I have done the hard reset, install drivers, soft reset, insert card a million times (still error). I have tried the 2 drivers above and even the 'Perfect Prism' drivers.
Tonight the only thing that worked was inserting the card very softly. Once it started working, if I leave the card in I can turn it off/on or do a soft reset and it keeps working. If I remove the card it will be another 30 minutes till I can get it to work again.
I'm never removing my wifi card again.