Ever since I got my 1GB SD card, I have had to disable the Media conduit because Hotsync would get stuck sync'ing the media files. It turns out that this was related to the DCIM folder on the SD card. In FileZ the SD card DCIM folder would be empty. In FileProg the program would get into a loop trying to read the contents of the DCIM folder. So I tought that could be the culprit. I renamed the problematic DCIM folder as DCIM-old (just in case), and I just created a new DCIM folder. I also ensured that there were no media files in the camera, SD card, or Palm Desktop (also erased any non-existent expansion card.

Then I did a hotsync,,,, and voila. Now Hotsync syncs my media files, and I can transfer photos and videos to the card.

The whole problem seems to be a corrupted DCIM directory. I hope this helps folks that I have seen have the same problem. Happy treoing!