Update... I loaded 1.0.4 beta firmware on and no change in my behavior.
For running digi-in at 24/48, the available time ticks down as if it were running at 24/96 (~3:54 in my 8gb card).
If I switch to 1/8" in and manually set everything to 24/48, I see an available time of ~7:54, so it seems the MT2 is able to 'see' the whole card and knows how big it is.
Just for shits and giggles I ran the thing at digi-in @ 24/48 out of my minime and left it running as long as it would allow and it ticked down to 3:54 and stopped. I rebooted the MTII and started a new recording and it detects the remaining ~4GBs and shows me a remaining time of ~1:55. so, it seems as though when running digi-in it is calculating the available time at 24/96 no matter what the actual input signal is (which is absolutely stupid in my mind). When I pull the files over to my computer, WaveLab4 sees them as 24/48, so the spdif stream is being detected correctly and the file header and data is presumably being written correctly, it's just the time remaining is being calculated incorrectly. Some quick tests at 24/44.1, 24/48 and 24/96 show the same thing but the time remaining always shows as if the stream were 24/96.
I don't have another card to try with it, but if the analog in is able to properly detect the size and calculate it based on 24/48 I don't know why the digi-in wouldn't.
In re-reading busterr's post, it looks like he checked his time remaining field going analog in. can anyone confirm that at digi-in the time-remaining calc is based on anything other than 24/96? Might be time for an m-audio incident report.... Thanks
Edit: Incident Report opened... we shall see what m-audio has to say.