I've been in the same boat before. This could be for a a few reasons:
Their antiquated software may not be set to read 256 meg memory sticks. (Had this problem with 512 meg CF cards)
You may need to take all of the photos off of your stick, and use your camera to format it. This may be a formatting issue.
If those don't provide any insight, check the knowledge base at Sony for issues with their 256 meg Mem Sticks.
-SF
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