I had that issue before and even read this post of yours prior to finding a solution.
What I did to get my MP3 Player working again was I plugged it into my PC's usb and then right-clicked the drive and chose Format... then reformatted it to a "Fat". Then I unplugged it from the usb and it started recording again.
Hope this was of help.
Ultimater at gmail dot com
June 2007