What about 2GB MMC's. Anyone tried?
since the Z accesses SD cards in MMC compatibility mode, I would guess that they are also useless.
I would guess that the problem is bad programming - the author of the driver probably used a counter or pointer that's too small to hold the number of blocks in the device and it wraps back to zero or a negative number (quite possible since people have reported crashes, which implies data in the kernel is being scribbled over).
In theory, if you had an emulator and a debugger, you could work out where the problem is, and then do a binary patch.
Alternatively, wait for the opentom/tom-tom devs to finish their fast SD driver and wait for it to get ported across.