When I purchased my KN7, it came with a very small 8mb SD Card which already had some Technics data on it. I had stored about 8 folders when I got this 'error' message. I did not understand this so I telephoned TECHNOE (UK) and they told me the card was indeed full.
Since then I have filled a 32mg, a 64mg and a 128mb card and each time they have reached their storage capacity, I have got this message. I did asd why the message didn't just say "FULL" and they couldn't tell me.
Hope this helps.
Aud (U.K.)