Camera thinks card is full??

Hi, I have a new JVC Everio GZ-MC500 video camera. Came with 4GB microdrive which I replaced with an 8GB CF card. It will record 1 hour of untra-fine quality video with the 4GB card but I need at least 2 constant hours so I bought an 8GB card. The camera acknowledges I have 2:00 hours of record time on the LCD display but when it gets to 1 hour, it beeps and says card full, then STOPS recording?? If I press record again, it will go for another hour! Why is this happening? Seems like the software on the camera is screwed up. ie: it says I have 2 hours available, but will only let me do an hour at a time? If I change the resolution settings, again, it says I have 4 hours etc, but stops half way. Any tips? There's nothing in the settings to change this.

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