I set up the virtual memory in the control panel to use 128mb of Internal card (4 gig)

Now I cannot connect with USB, it says "Unable to connect via USB. Memory Card in use: Internal memory card"

I also have a 4 gb in the removable slot, but evidently that won't show either.

I went in to control panel with USB cable disconnected, and unchecked the box for using virtual memory, trying to get back where I can access card with USB, but it won't let me change it.

Want wierd? when I go into 'details' on the internal memory card, it shows a constantly increasing 'Storage memory in use' - currently over 4075.77 GB!!
If I could only have a tenth that much memory!

How do I dump the virtual memory/and/or/gain access via USB to my cards again?

My guess is that your memory card is corrupted. Try to save the data and format your card.

Side note: while VM is enabled, yes, you cannot use the card with VM on it.

However, it will list all cards that are in use: it would say both Internal and External memory cards were in use if this was the case.

This does sound like a card format issue. Try an external reader first.