OK- Here is what I found.
My card stops at 7.99gb also.

I have 3.44gb left on the card.
It just ceases up the player. I have to pull the batteries to make it turn off.
It reads the card as 12gb, and it says I have 1:47 left on the card at 24/96. But won't record on it as you all have found.
That is really good to know.
Note to self "Do not record at 24/96 with 2:00 hours on the clock"