HI Kirlian
the new OS (V4.01) fixes the problem. I have just inserted my CFC into a Kingstone USB card reader connected to an iMac running 10.5.8 and formatted the card to MS-DOS(FAT), the last option in Utility Disk. After formattiing I copied the card files of 4.01, inserted into Eclipse and run the update flawlessy. The unit was already running 4.01, so this confirms the problem is solved. If you are on an older version, you have to bear with this issue for the last time.
You may also try formatting the card on Eclipse itself. I have had success with this, but it may depend on the card size, speed, etc.
best
I
