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He was using the encryption option. It binds the card to the device's SID. If you hard reset the phone get's a new SID and the card will no longer accept access from it.
That's my guess.
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MPx-200 -> MPx(300) -> MPx-220 -> MotoRZR -> Moto V600 -> SMT 5600 -> PPC-6700 -> Treo 700wx -> Mogul -> Diamond -> Touch Pro -> TOUCH PRO 2 -> HTC EVO 4G
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