1. I tried 1.78 and 2.05 - same result.
2. 2GB MiniSD Transcend. Worked before.
were you using a different firmware version before? 1.75 introduced sdhc compatibility - unfortunatelly this resulted in a lowered compatibility with non-sdhc cards like your 2Gb one.
You can try one of two things:
option a: try using an sdhc card (>= 4Gb). I am not aware of any miniSD cards that are SDHC so you might need to use a microSD with a miniSD Adapter.
option b: you can try flashing an older kernel firmware (<= 1.74). The bootloader of the card should still support non-sdhc cards for upgrading purposes (in fact, in the MiniSD versions, upgrades can only be performed with a non-sdhc card)