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Remember you have to use the Sony MemoryStick Formatter tool for compatibility purposes with the MemoryStick. DO NOT USE WINDOWS XP TO FORMAT THIS MEDIA. If you do you will likely find that it does not work.
If you are using MemoryStick PRO media (which I assume you are), then ensure you have the MemoryStick PRO logo next to the MemoryStick slot.
Firmware updates, and the MemoryStick Formatter can be found on VAIO-Link - click Drivers and updates, type in your serial number and download the MemoryStick software.
You camera can do it too.