That is odd, I have an OLD Olympus camera and I have done transfer from internal to card on numerous occasions. You should also be able to link the camera to a pc with the cable (comes with camera) and do it that way, of course you need the Olympus software loaded to the system.
I have an Olympus DE210 camera that uses the XD storage card. The camera also has its own small internal memory. The camera lets you mark any pictures as favorites and stores them in the internal memory. The problem is that when you want to transfer those pictures to your computer you cannot. You can't transfer from the internal memory. Any updated software out there that bypasses this? Olympus really isn't any help and they don't seem to care either.

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