it looks like the software reset does not work with 8GB but it's hard to tell.
my reset is done in hardware,so i have no problems regardless of what OS or what card is inserted,so i suggest get your motherboard modifyed to fix the problem.
i recommend all A1200 users have this done in hardware.
*** ALL MODIFICATION AT YOUR OWN RISK ***
NOTE: there are two type's of hardware fix for the PCMCIA.