I had some problems with my CF card as well...
normal HDtoolbox would not see it.
But HDtoolbox of os3.9 did. After a bit of struggle it showed up in early startup. and i was able to install os3.9 to it..
Now it just works..
(my cf card was 512mb tough) have not tried bigger CF.
But my SD-IDE adapter and a 1024mb MMC card works wery well.
Same problems with HDtoolbox, but it works now.