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Try checking as to whether the smart card is write-protected in any way (- I doubt it).
Then, see if another smart card works properly in your Camedia camera. (Or if you have no other smart card to test with, or will not be getting another, then try a factory reset of your Camedia camera, and see if that frees up the ability to remove content on the smart card.)
If all else fails, you may have to assume that your Camedia camera's smart card slot is malfunctioning. Of course, before assuming that, you should also try removing the batteries, and leaving the camera on a (dry, non-humid, non-dusty) shelf for overnight. Then put the batteries back in and try the camera again.