I'm not trying to be a smart a$$, but seriously, the reason you are having this problem is because you have a SanDisk brand card.
The only way you are going to actualy fix it is to throw it out and buy a card from a quality manufacturor such as lexor.
As for a temporary fix for this card, I'm not realy sure. Perhaps someone else can help you there.
As for the file system you choose, it realy doesn't matter if you're not putting software on it. If you run windows on the desktop, I'd use vfat. If you run linux, or if you install software to the card, I'd format it ext2.