Built -in memory full

Nothing is wrong with your memory card.
The internal memory of the camera is full.
Try changing the storage to Memory card (using the camera menu).
If you need further help, let us know (but try first).

In the camera menu, you will find an entry for "copy" which gives you the option to copy the internal memory to a memory card. Once that is done, remove your card, go back into the menu and find "format"...follow the on-screen instructions to erase the internal memory and promise yourself to never use it again. After that, your memory card should work properly in the camera.

With no card in the camera, go into the menu and find "format" and follow the on-screen instructions. This will erase all the pictures. You should use a memory card from now on and never go back to the internal memory.

This should help
Press [ menu set] to display the [PLAY] mode
menu and select the item to set.
You can copy recorded picture data from
the built-in memory to a card or vice versa.
1 Press up/down to select the copy
destination: (in to card) and then press
[MENU/SET].

Press menu/set...playback menu....select "copy" Make the choice to copy the internal memory to the card and select "yes".

http://www.panasonic.com.au/products/details.cfm?objectID=5485
Please go to this above site and download your user manual, and drivers, inside the manual the operation you describe is addressed inside. Usually though, the SD card is only used when the Camera's memory is "Full" Or there may be a function to transfer to SD card, but usually one simply need an increase in memory, and to get the photos one uses the software and downloads to a PC, or where ever and it doesn't matter where it is stored.

Remove the memory card. Go into the menu and find "reset"...follow the on-screen instructions. Then, go into the menu and find "format"...follow the on-screen instructions to erase the internal memory. Then insert your card and all should be well.

Select "COPY" from the PLAY menu. Select the direction (in this case, IN-to-card). Select YES.

Remove the card, go into the menu and find "format"...follow the on-screen instructions.

The problem may be simpler to solve. Perhaps you never normally change the setting from iA (intelligent auto), but the wheel with settings can get moved by accident. If it goes around one place counter-clockwise, it puts it onto the built-in memory, it seems. I had the same problem, and it frustrated me for months!