I have an Acer Aspire 5672 WLMi , about 3 years old. I have never been able to get XP or Win 7 beta or RC to recognize
my SDHC cards. I can however use these cards with no problem in Ubuntu Linux or PCLinuxOS 2009, so the hardware is up to it.
You must have a later version of this card reader because at least your machine sees the card even if you can't use it.
If your card reader is a Texas Instruments device check the TI web site for Win 7 drivers.
Attempting to use Device Manager to update the drivers returns the message that the drivers installed are already the best.
I use a nifty adapter made by Trancend that looks like a thumb drive with a slot on the side of it sized for the SDHC card.
You simply plug the card into the slot and then plug the adapter into a USB port.
UPDATE: A google search for the TI PCIxx12 Integrated Flash Media drivers came up with this
Texas Instruments PCIxx12 Integrated FlashMedia Controller - Vista Driver | Free Vista Drivers
This is a direct link to a driver up date that did the trick for me in Win 7 RC. W00T
Maybe it will work for you.
I'm gonna try it on XP Pro.
UPDATE 1: Works with XP too. Looks like Texas Instruments finally got their act together for Windows drivers for this device.
The neat thing is that Linux beat them to it by about a year. LOL.