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Help! New Olympus e520 not working

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No Lifer
Have a new e520 with a Sandisk 2GB Extreme III CF card also new. In the camera it says the card is full, so I go through the menu per instructions to format it, it says all data will be lost I say ok then get CF CARD ERROR.

If I plug it into the computer and select storage mode on the camera the computer says I need to format the drive E, so then I try that and it says no disk in drive E.

Is this card crap or what...?

I found an XD card this is working fine with, so I'm not sure if the CF card was at fault or the camera's ability to read CF...
 
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