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From extensive reading of many many support sites, that does seem to be the issue.this has nothing to do with the phone but more so to do with the froyo 2.2. thats when this entire process started...
This one baffled me for a while.
I performed:
* Reseat of the microSD card
* Mount via Windows
* Nandroid Backup (writes to the microSD okay)
* Full Wipe + Nandroid Restore
* Swap microSD with colleague (also HTC Desire) and found that I could read his card and he could read mine without any issues but once I tried to read my own card again, it defaulted to read-only again.
* Mounted via Windows and performed a CHKDSK /F
(You might want to CHKDSK /R as well to be sure)
Issue solved with a bad link fixed. Didn't need to format.
Try the above steps before resorting to a format.
HTH
-Aj
you will simply get an error message you have no memory available.

Same problem here, Sandisk 16gb.
Did the 2.2 update yesterday, copied about 500mb of files onto the card last night and got the read only.
Card capacity is showing correctly, 14gb of 16gb free yet astro shows individual files of 8gb on the card with gibberish names.
Windows won't recognise it, can't format, chkdsk, anything.![]()
interesting tip. i had not thought about using windows error checking. i have had this happen 3 times personally and i suspect it may happen again. i have a 16gb card and stock unrooted and froyo'ed... ill use your method next time..![]()
hey all had this issue too...
got froyo update 2 days ago for my Desire and today was the first time i connected to my pc.. and bang!!!! read only on sd card!
I DID NOT HAVE TO FORMAT TO FIX THIS!!!
i popped the sd card into a card reader as the disire would not even let me read it...
under windows opened my computer right clicked on the sdcard "K" in this instance, went to properties/tools/error checking...
ticked both box's auto fix errors & scan and attempt to fix errors...
10 mins later said had errors that had been fixed...
popped back in the desire and weyhay!!! sorted!!!...
i have an 8 gig samsung and to backup reformat and restore would have taken much longer....
hope this helps....![]()