Sony Clie NR70 memory stick problem

[zdsco]

I have a NR-70 Clie. After installing update software Clie would not recognized 128mb memory stick. The following error message occurs: “Handheld Error-the start up application cannot be run”. Based on Sony technical support recommendation I did the “hard reset” but Clie would beep and still would not work. Also I re-formatted the memory stick using my PC.
Please advise.