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I have a Dell Inspiron 6000 laptop. It has Windows XP MCE 2005 installed. The laptop also has a SD card reader. There was some issue with the performance. So I performed a recovery and restored the entire operating system. But after that the SD card reader fails to work. It is not at all identifying the 4GB memory card. It works well before, but this problem appeared only after formatting the system. The same card works well with a usb card reader.
There are less chances of hardware failure. Because it was working fine before. You must try to check that all hardware are installed and working fine in Device Manager. If there are number of hardware listed with errors then you need driver updates for all. After installing Windows XP did you find any message on your screen related to new hardware found. That shows that there is ample of hardware which are not installed properly.
Just check once in Device Manager. That is the only place where you will find appropriate answer. If there is on proper driver or hardware listed then your system will fail to work properly. Right click on the card reader and then simply choose properties and in that you can find the status.