I think spunker is suggesting you flash the ROM using the memory card method (although I'm not sure why based on your original post). Have you check Dell's site for the latest ROM (look
here ) for the X3i?
The Welcome.exe fix may also be worth a try
(This essentially clears the memory and the Unrecognized card message is sometimes caused by a lack of memory):
1. Open File Explorer
2. Go to Windows Folder
3. Scroll Down to the "W"s
4. Click on Welcome.exe
5. You will go through the welcome screen like you did when you first got your PPC (Note: Even though this will take you through the same process like after a hard reset, this is not the same as a hard reset. Your data/programs will not be lost).