Qole, I have formated twice into ext2, not fat32, and am still getting errors not allowing the file to be more than 2 GB. I tried setting it your 3 GB and 2.7 GB, and both failed to get the file larger than 2 GB. This is definitely not a fat32 issue since the image is on the ext2.

I can tell you by setting the first partition to fat32 256 MB, it cleared issues with the file manager detecting the microSD card. I might try the dd thing on another computer and transfer the blank image to the microSD card - that might work.

If I extract the debian-squeeze-rootfs.tar.bz2 to the ext2 partition instead of the image on the ext2, will that cause easy debian not to work? That would clarify all issues with this image file - which is becoming more of a hassle than a blessing.