Hi and thanks for using JustAnswer. My name is Eric and I will do whatever I can to help answer your questions and get your problem resolved!
First let me apologize that you havent had a real answer yet, I know that can be frustrating and we usually are very fast to get you the help you need.
"Process system is not resonding" isn't an issue with the SD card. While its true that a defective SD card can cause random reboots, the fact that you are getting the system not responding error means its not the SD Card (more than likely).
The issue is somehow files in the kernel or at the system level in the OS itself, became corrupt. When certain actions or processes are being called by the OS, its causing itself to crash which forces the reboot.
You should be able to fix this with a complete reset of the device. As long as you have a Google account synced to your device, your contacts, calendar, etc. will be re-synced to the device after you run the initial setup again as long as you sign in with the same Google/Gmail account. Any apps you have paid for, you can get back after you reset the device by opening the Market, pressing Menu on the phone and choosing "My Apps".
I recommend you go to http://google.com/contacts on your computer(with the same google account thats on the phone) then check all your contact groups to make sure the contacts are synced(if not, ask me about contact backup instructions).
As far as any data that is stored on the SD Card(images, music, etc.), it will not be erased. Only the phones internal memory is formatted.
To complete a Factory Reset follow these directions:
- Open the Settings App
- Choose Privacy
- Choose Factory Data Reset
If you have any further questions, please feel free to let me know...
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