Corrupt files/folders on SD Card

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I have a Toshiba 2GB SD card and am having the following problem. I have created a few folders on the card for MP3 files and I can copy a number of them over and it works fine, but when I copy an additional number (not sure how many), the card ends up corrupt. Sometimes I can read the card and see the corrupts files/folders and other times I can't even get to the card. In one case the only way I could reformat it was through the command prompt in XP.

When I format the card using the Treo 700p, it formats the entire 2GB using FAT32. Is there a problem with either the FAT32 or possibly supporting space beyond 1GB? Thanks.