Hi,
Yes, that is correct, the software is copy-protected and requires the card it comes on to be present in the machine.
The card is a 512Mb total capacity, so there is not much left over for large picture collections or MP3s. If you are used to a 2Gb+ card in your device then this is a limitation.
This shortcoming for some users is the first thing we thought about and reported back to Garmin when they showed us this new product.
They have indicated that they may shortly be releasing the software on a larger capacity card to address exactly the issue your post reports, a dearth of free space for people used to having their music collection available on SD card.
With any luck this will be soon and minimal if any price increase given the constant drop in rrp of flash memory cards. As this is still very much a "maybe" issue with them, we have not heard whether existing customers will be able to send in and replace their smaller capacity cards if and when they release a version on a large card. Let's see how good a customer service they have, there's room to score points away from TomTom here!
Kind Regards
Ivan