most of the time you will have to format when u get that msg.. but a nice little work around is usin the Sonicstage backuptool this way i keeps everything and u can dup it to other PCs ..
All was going fine with my Sony NW HD-5 on SonicStage v3.1 (came along with da CD) until on a dreadful day on which I upgraded to SonicStage 3.2. Suddenly the SW stopped to recognize the device and complained that :
"this device must be initialized to be used with current version of SonicStage"
I'm running on Win XP SP2 at home where this problem occurs. but on my office PC (win 2000) it works fine even on v3.2.
Has anybody found a workaround to this issue or know a way to fix this thing ? It is really irritating !
Pllzzzz help

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic