After searching a whole bunch of forums (mostly http://xda-developers.com/) I finally found a solution that allows me to use a 4GB SDHC card in my O2 Zinc. This was quite an achievement because it is not a very common PDA and although there was a CAB file which fixed the solution, the card disappears after the device enters sleep mode.
Unfortunately after days of trial and error it looks like nothing fully fixes the problem which is annoying. The only thing I can do it write an email to O2 and hope they fix the SDHC card support.
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