I too just got an ATP 1G card and while I'm not having storage size changes, but here's what happens for me:
I format the card with xp using my laptop's built-in reader to FAT32, I pop it in the axim and it says "Do you want to try to format this storage card to make it readable?" etc, etc... If I say "no" I can't see it in any file explorer.
If I say 'yes' (the only way I can do anything to it on my axim), then I can go in resco file explorer and format it, but then xp can't read it and asks if I want to format it. (and so the circle goes). Anyways, I just discovered this so I thought I'd write it down in case anyone else had the same problem.
This looks like a very promising solution and impresses me with ATP's service that they'd read the forums at a pda site:
http://www.aximsite.com/boards/showt...ight=format+sd
I'm planning on emailing ATP and see what they say.