David,
Since the pix are stored OK, it sounds like there is a problem with the camera/card interface that only affects reading from the card. There are a number of possible electrical reasons that this would happen, and the firmware is a possibility as well. It doesn't necessarily mean that there's anything actually wrong with the card or the camera.
In any case there's nothing to lose by upgrading firmware. If this does not help, take your camera in to the store where you bought the card and show them the error. Regardless of whether it works in another camera, it's not working for you.
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