The E327 works with SD cards. Your 8GB card is actually an SDHC card. While it fits into the slot, it's electronically incompatible and will not work in devices not designed to accept SDHC cards. You need to use SD cards, 2GB and smaller.
SOURCE: When i put my sd card into my camera it needs to be formatted
Having received no response in over a month, I assume this is no longer a problem.
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