Thanks for the suggestions but forgot to mention I have tried a known working sd card out of my wifes N97 and that says same thing so I dont think its the card itself. I think it is more of a software issue with the phone. I think I have ruled out hard ware issues as I can see mmcblk1 in /dev and when I connect to computer it can see the card although it is still unrecognised. Just to be sure I have just formatted and checked for bad sectors in card which all went ok.
So I am left with either a software or hardware issue. I am dubious as to a hardware issue as it all worked ok before I deleted said files and reflashed.