since it`s only using a miniscule part of the total storage capacity I would say its got a problem, the format can`t be the issue since it never uses much of the memory it has, if they get stroppy then ask them to demonstrate it working with more than ten seconds of video in the store, one of two things will happen
a)..the "in store geek" will walk up and humiliate you totaly by recording 25 minutes of video on the card, probably in 3d with surround sound
b)..they won`t be able to get it to work either and will swap it (they can hardly claim it`s ok if they can`t work it)
personaly I like Fuji cameras APART from the fact they use XD media cards, I still use Fuji cameras but it is annoying having to use a special media card for the camera when I have loads of SD cards floating about the place.
[EDIT] IMO Polaroid cameras are a bit tacky/plasticy too, they look clumpy and cheap, just my opinion
Dr Frankenstiens mum told him to make some new friends, not knowing where this was going to lead.