Where did you purchase your Micro Drive from? It looks like the one in the picture is an OEM card & will not work. Those are usually packaged with specific devices such as cameras. I currently use a Dell Axim x51V there have several documented issues with these OEM cards not working. The only Seagate Micro Drives that will work should have a blue & orange label on them.
FRYS.com*|*SEAGATE
Personally I would stay away from the Micro Drives because of the moving parts. I have noticed reduced battery life with my device. The solid state devices do not have any moving parts. If you still decide to go that route. Be sure to format the the card for Fat 32. Otherwise your device may not recognize the full drive. Before I formatted my drive I was missing over 700meg.