sync / drag and drop problems - sdhc faulty?

Oh, and as to USB modes: I’d keep the Clip’s USB mode (under settings) set to MSC. It just is less problematic than the alternate, MTP mode (or the Auto setting, which can flip between MTP mode (its default) and MSC mode, depending on a computer’s capabilities). Having said that, if you use DRM’ed files (Audible, WMA protected content, some library files), you’ll need to set to MTP (or Auto)–MSC mode will not handle content protected by digital rights management.