I got an email from a customer who did a extensive research about SD card problem. I think the solution is terrific. After getting his confirmation that I can publish these, I hope to share this info for all headfiers.
I have finally gotten the HM-602 to work properly with 32GB SDHC cards. The results of my analysis are detailed below:
1) Yes, the SD Card reader in the 602 is very finicky. This is complicated by the fact that each computer hardware manufacturer has implemented their own version of SD/SDHC formatting software optimized for their PC. The solution is to format each and every SD/SDHC card using the free
SD Formatter 3.0 (http ://www.sdcard.org /consumers/formatter_3/) from the SD Association [of Manufacturers] to ensure that the card is formatted to industry standards.
2) A very high percentage of 32GB cards are defective or just plain fakes. Three out of five that I bought were so. I now run each card through H2testw, the best SD tester available, ( http://www.softpedia.com/get/System/System-Miscellaneous/H2testw.shtml ) in order to weed out the fakes.
3) I then re-format the "good" cards using SD Formatter 3.0 and then copy my FLAC tunes to the card. I send the "bad" cards back for a refund.
So far, I have tried a 16GB and a 32GB SDHC card, both class 4, from Kingston and SanDisk (respectively) and they work. By work, I mean that they are read by the HM-602 and after I power off and leave the card in the drive, they display the lists after I boot up the player and allow me to access the items in the list. Everything I wanted.