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I had that problem, but I was using a SanDisk 256mb SD card. In case you haven't heard, the SanDisk model (the one that Dell sells) likes to screw up and lose your data. I too had similar problems, which I got around by installing to the built-in card, then copying to the SDCard.
It didn't fix the "random formatting" error, and I lost all of my data more than once. Finally, I returned the SanDisk card to Dell for a refund and bought a Memorex 256MB SD card. I have had no problems at all with it.
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