Camera Not Recognising Free Space on SD Card

[Damionix]

OK, here is my Dilema.
I have a 8GB memory card with 4GB free space and the default destination to store pictures on my phone is the Storage Card. But for some reason, the Camera App only lets me take a maximum of 13 pictures, Video only 2 minutes, and then it displays out of memory.
I have copied off everything and Formatted the SD Card, and it still displays the same thing.
But if I switch storage to Main Memory, it says 156 pictures can be taken, and yet it only has like 145MB left there. And the size of the pictures are 745KB at most so far.
Any help here would be highly appreciated.

Using Merdin 3.4 ROM

Thanks