Do you have connect PIN69 with R7 (10k) to V3.3 (Vcc) or test a other mmc/sd card. My borad work with the mmc part very fine.
I have format the mmc/sd card with FDisk(Linux) format type16 with 2 Partitions (1=fat 2=ext2). But I thing the filesystem is not your problem.
When you have a problem with the Filesystem the error code is "Linux.bin not found"! I thing you have a hardware problem.
Why dont you copy the image from the Web Arm page unsing dd ?
I also have only xp so I used a port of the dd program and copied ulrichs image. So I got the 2 partitions on my mmc without the need of Linux.