That's great - I'll document my settings, etc, later on. However, I honestly don't think it's the card, and I can't afford to go out and buy another one. There was nothing saying that the card had to be manufactured by Kingston. I'm quite sure another SIO2IDE will work fine. If I can borrow another CF card somewhere I will try it, but I'm not throwing even more money at the problem.
First - put on forum your interface photos!
On a picture above you can see that ide-cf adapter isn't connected with power supply.
Please connect (2 wires) +5V, and GND to IDE-CF Adapter (You will find 2 goldpins on sio2ide pcb above the atmel on the right) first pin on the left is GND, second have +5V.
power supply connector for ide-cf adapter is the same as in fdd power supply.
look at:
http://lagwar.com/home/wp-content/uploads/..._power_conn.jpg
RED wires is +5V
BLACK wires GND
Then check again sio2ide.