N97 Memory in use and memory card not present issu...

Hello,
I bought my Nokia N97 2 weeks ago from your website. I switched my old phone data over to the new one, transfer few document, music onto the new phone from my PC and updated software last week. It worked for up until now but yesterday I all of a sudden
- while I was playing music got a message saying files have been corrupted, it stopped playing music and deleted all documents from the E drive.
- I went into the file manager but I could not access my E: Mass Storage drive anymore (from file manager) as it says 'memory in use'.
- I connected the phone through USB cable to my PC, select PC suite on my phone but I got a message on the phone screen which said "Memory card not present (USB card may not work as expected)"even though I used it last week. However, while USB is connected, I could see the 'Phone Browser' on my explorer on my PC but no mass storage
- I have restarted several times, took the battery in and out and tried but no luck.
- I did a hard reset on the phone (*#7370#), it reset everything but no luck on the E: Mass Storage as it still says 'memory not in use'
- I tried software update, it refreshes the list and does not update anything when I click on it. 
- I went to Nokia Care Centre and they failed to fix the issue (after doing a reboot) and asked me to send the faulty phone back.
I bought the phone from mobilephonesdirect.co.uk - when I called them, they were quite hostile and asked me to email ([email protected]). I emailed but the response time is apparently 5 days. The guy on the phone tells me since the phone is 7 days older they cannot replace it. I called the insurance guys, they said because it is a manufacturer issue its not covered by the insurance. I called the repair centre recommended by mobilephonesdirect, they said if nokia care centre cannot repair it, there is no point in sending in the phone. 
Now what do I do? Does anyone know how to fix this "memory not present" issue? 

Hi mate, Not sure how to fix the problem ,but you have the right for this to be sorted. 
I take it you bought it from a website or over phone,this is classed as distance selling, That means you are entitled to 7 days "cooling off period" in which you can return the product no questions asked. I think this is where they are getting there 7 days from. It has nothing to do with faulty goods.     If the goods are faulty it breached the "Sales of Goods act 1979"  as the goods should be fit for purpose which yours is not. 
The Sale of Goods Act makes reference to ‘the seller’, this is the shop, the retailer, or the individual you bought it from, and is who you made the contract with. It is not the manufacturer, and don’t let the shop tell you otherwise! If there is an obvious fault with the item at any time within the first 6 months and it has not been caused by wear and tear or misuse, your first port of call must be the shop you bought it from. They have the responsibility to put the matter right, and should not evade this responsibility by referring you to the manufacturer in the context of a guarantee or warranty. Even after this 6 month period, if the item breaks down prematurely , you should always go back to the shop or retailer in the first instance.
Your statutory rights under the Sale of Goods Act take precedence over and above any warranty or guarantee you may have with either the retailer or manufacturer. It is misleading for a shop to tell you they can do nothing simply because their warranty or guarantee has run out, because you will still have your statutory rights.
I have an n97 and my key lock slider just came off. I had to argue untill I was blue in the face that it is a fault and not over use (its the most pressed key on the phone) Finally they sent it off for repair for me.
Hope all this helps a little. There is more info on many websites on Sales of goods act which may also help you.
Regards
Jesta 

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